YEAR IN REVIEW: Michelin strengthens OTR business

The big man with the rolls — otherwise known as Bibendum, or the Michelin man — got bigger in 2018. And who knows what might happen in 2019.

Group Michelin made two major acquisitions in the past year, both with huge implications for the OTR sector.

First, the French tire maker acquired conveyor belt and polymer goods maker Fenner P.L.C. in a cash deal worth about $1.7 billion.

Fenner, a producer of conveyor belt and reinforced polymer products for the mining and general industrial markets, posted revenues of more than $900 million for its most recent fiscal year ended Aug. 31, 2017.

Fenner operates two divisions: Engineered Conveyor Solutions (ECS) and Advanced Engineered Products (AEP). ECS is a producer of heavy conveyor belts and AEP is a producer of diversified polymer-engineered products.

With the ink barely dry on that deal, Michelin announced in July that it was purchasing OTR/industrial tire and wheel producer Camso Ltd.

The $1.45 billion deal closed in late December, allowing Michelin to begin the process of melding its own OTR tire activities (farm, earthmover, off-road truck, etc.) with Camso's into a new division to be based in Quebec that will oversee a global business with 26 plants, roughly 12,000 employees and annual sales exceeding $2 billion.

Michelin said it has identified significant opportunities to increase sales and reduce costs, thereby unlocking up to $55 million in synergies by 2021.

By acquiring Camso, among the top three players in the construction market in track and tire solutions for small heavy equipment, Michelin's annual sales could increase by $900 million or more, putting Bibendum in a position to challenge Bridgestone Corp.'s 10-year reign at the top of the global tire rankings.

In addition to creating National Tire Wholesale (see story on page 1), Michelin in 2018 also:

Announced that Florent Menegaux, senior executive vice president and chief operating officer, will succeed Jean-Dominique Senard as CEO when Mr. Senard's term expires in 2019;

Resumed production of giant mining tires at its 5-year-old earthmover tire plant in Starr, S.C., which was suspended in late 2015 because of slowing global sales;

Unveiled a high-performance resin adhesive that will replace resorcinol as its material of choice for bonding textiles to rubber;

Stopped production at its 49-year-old truck tire plant in Ballymena, Northern Ireland, two months ahead of the factory's scheduled closing;

Partnered with the World Wildlife Fund program as part of a campaign to reinvigorate the Uniroyal tire brand that aims to double the number of tigers in the wild by 2022;

Began a campaign, under #the- truthaboutworntires, that it hopes sparks a dialogue among tire companies to provide consumers with more information about how tires will perform over time;

Set tire-recycling targets for the next three decades, including a 2048 deadline to manufacture tires using 80 percent recycled materials; and

Acquired Tablet Inc., an online travel agency that specializes in offering "unforgettable and original experiences" at boutique and luxury hotels.