CEAT Acquires Camso Brand from Michelin in $225 Million Deal

Key Highlights:

• CEAT acquires Michelin's Camso business for $225 million, including two plants in Sri Lanka.
• The deal strengthens CEAT’s off-highway tyres (OHT) and tracks portfolio.
• Michelin exits bias tyres, focusing on premium radial offerings.
• CEAT gains global access to 40+ OEMs and distributors.
• Both companies ensure a smooth transition, pending approvals.

CEAT, a company under the RPG Group, has finalized an all-cash deal with Michelin. This deal is to purchase the Camso brand’s off-highway construction equipment bias tyres and tracks business. The agreement is valued at $225 million. It includes two manufacturing facilities in Sri Lanka. It also grants CEAT worldwide rights to the Camso brand. In 2023, the acquired business recorded revenues of $213 million.

Camso’s Market Strength

Camso is a top brand in the off-highway construction equipment industry. It has a strong foothold in both aftermarket and original equipment (OE) markets. These markets are spread across Europe and North America. CEAT will gain permanent ownership of the Camso brand after a three-year licensing period.

Enhanced Product Portfolio for CEAT

The acquisition strengthens CEAT’s position in high-margin off-highway tyres (OHT) and tracks segments, including agricultural tyres, material handling tyres, harvester tyres, and power sports tracks. It adds to CEAT’s diverse OHT portfolio, which already includes over 900 products catering to agricultural and construction needs.

Michelin’s Strategic Shift

Michelin is exiting the compact line bias tyres and construction tracks segments as part of its focus on higher-value construction offerings, such as radial tyres and assemblies. The sale aligns with Michelin's broader strategy of modernizing operations and focusing on high-performance products.

Manufacturing and Transition Plans

The deal includes Michelin’s Midigama Tyre Division and Casting Product Division plants in Sri Lanka. This ensures job security for 1,587 employees and continuity for Michelin customers. Both companies have committed to a smooth transition, subject to regulatory approvals.

Access to Global Customers

CEAT will gain access to Camso’s global customer base, including over 40 international OEMs and premium distributors. This acquisition provides CEAT with an opportunity to expand its presence in Europe and North America.

Leadership Perspectives

Arnab Banerjee, CEAT’s Managing Director and CEO, called the acquisition a key part of CEAT’s growth strategy, praising Camso’s technological strengths. 

Anant Goenka, Vice Chairman of RPG Enterprises, emphasized the strategic importance of shared values between CEAT and Camso. He also highlighted the focus on quality that both companies share.

Future Focus for Michelin

Michelin plans to continue its operations in Sri Lanka. The company will focus on modernizing its facilities and improving performance. Nour Bouhassoun, Senior Vice President of Michelin’s Beyond Road Business Line, expressed confidence in CEAT’s ability to manage the transition effectively.

Also Read: CEAT Limited Announces Q1 Financial Results for 2024

CMV360 Says

This deal is a great move for CEAT, giving it a chance to grow globally and offer more in the off-highway tyre market. With Camso’s technology and strong customer base, CEAT is set to expand even further. For Michelin, it’s a smart step to focus on high-value products and plan for the future.