CEAT and Michelin have entered into an agreement for CEAT to acquire Camso’s off-highway construction equipment bias tire and tracks business from Michelin in a deal valued at about US$225m.
The transaction will include the business with revenues of around US$213m for CY 2023 and global ownership of the Camso brand along with two manufacturing facilities in Sri Lanka.
Camso is a premium brand in construction equipment tire and tracks with strong equity and market position in the EU and North American aftermarket and OE segments. The company will now be assigned to CEAT across categories after a three-year licensing period. This will expand CEAT’s portfolio in the off-highway tires (OHT) and tracks segments.
The acquisition is a milestone for CEAT in its aims to become a global player in the high-margin OHT segment. Both CEAT and Michelin say they are committed to a smooth transition for customers, suppliers and all employees. The transaction will be subject to regulatory approvals from relevant authorities.
Anant Goenka, vice chairman, (CEAT parent company) RPG Enterprises, said, “This acquisition has significant strategic consequence for CEAT as it catalyzes the company’s journey toward being a leading tire maker globally. Camso is an industry leading brand in the off-highway tire market built through many years of investment in creating product superiority and manufacturing excellence, nurtured through the Michelin parentage. Most importantly, we found a great cultural alignment between Camso and CEAT because of our TQM way of working.”
Arnab Banerjee, MD and CEO, CEAT, said, “The Camso brand is an excellent fit with the growth strategy of CEAT’s Off-Highway Tyre business, thereby improving our margin profile. Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition.”
Nour Bouhassoun, senior vice president, Beyond Road business line, Michelin, said, “Michelin firmly believes that CEAT is the right fit to carry on our bias tires and tracks compact construction equipment business. Both our companies are fully committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers. With this operation, Michelin is continuing to reshape its Beyond Road business, in line with the group’s sustainable growth strategy.”
