CEAT Ltd. is acquiring the Camso brand from Michelin Group. The Camso line, which includes off-highway bias construction tires and tracks, has been part of the Michelin portfolio since 2018. CEAT will buy Camso in an all-cash deal worth around $225 million.
CEAT says the transaction will include the business with revenues of around $213 million for 2023 and global ownership of the Camso brand and the two manufacturing facilities located in Sri Lanka.
The deal is subject to regulatory review.
The Camso brand will be permanently assigned to CEAT across categories after a three-year licensing period.
According to CEAT, this acquisition expands the company's product portfolio in the off-highway and tracks segments including agricultural tires and tracks, harvester tires and tracks, power sport tracks and material handing tires.
“Michelin willl thus exit from the activities related to compact line bias tires and construction tracks,” says CEAT officials.
The acquisition gives CEAT access to a global customer base including over 40 international original equipment manufacturers and premium international off-highway tire distributors.
“The Camso brand is an excellent fit with the growth strategy of CEAT’s Off-Highway Tyre business, thereby improving our margin profile,” says Arnab Banerjee, managing director and CEO of CEAT.
“Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition. The track segment is a technologically superior segment with a limited number of global players. We also found high synergies between the two brands, CEAT and Camso, and are confident that both will benefit tremendously from their complementary capabilities and positioning.”
“Michelin firmly believes that CEAT is the right fit to carry on our bias tires and tracks for compact construction equipment business,” says Nour Bouhassoun, senior vice president for Beyond Road Business Line at Michelin.
“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.”
In a separate announcement, Michelin says the group will focuses its "efforts where its innovations and technologies are the most valued. The Michelin Group will thus continue to mainly offer its radial technology tires to the addressed market and will, as a result, stop the production of bias tires in its Olsztyn factory in Poland."
Michelin bought Camso in 2018 for $1.45 billion in an effort to expand its OTR reach.
