CEAT, part of the RPG Group, announced its acquisition of Michelin’s Camso Off-Highway construction equipment bias tyre and tracks business in a deal valued at $225 million. The transaction, which includes two state-of-the-art manufacturing facilities in Sri Lanka and global rights to the Camso brand, marks a major strategic milestone for CEAT in the high-margin Off-Highway Tyres (OHT) market.
Expanding CEAT’s Global Reach
Camso, a premium brand recognised for its strong presence in the European and North American aftermarket and OEM segments, recorded revenues of $213 million in 2023. The acquisition will permanently assign the Camso brand to CEAT after a three-year licensing period, enabling CEAT to broaden its portfolio in construction tyres, agricultural tracks, and material handling tyres. This strategic move aligns with CEAT’s ambition to become a global leader in the OHT segment.
Access To Global Markets
The acquisition grants CEAT access to a global customer base, including over 40 international OEMs and premium distributors, while complementing its existing OHT offerings. With over 900 products covering 84% of the agricultural tyre range, CEAT’s capabilities are set to expand further through the integration of Camso’s advanced tracks and construction tyres.
Anant Goenka, Vice Chairman, RPG Enterprises, said, “This acquisition catalyses CEAT’s journey toward becoming a leading global tyre maker. Camso’s industry-leading reputation and cultural alignment with CEAT’s TQM way of working ensure a strong partnership.”
Arnab Banerjee, MD & CEO, CEAT, said, “The Camso brand complements CEAT’s OHT growth strategy, improving our margin profile and giving us access to premium customers, a high-quality brand, and a skilled global workforce. The track segment, with its technological complexity and limited global players, offers significant synergies for both brands.”
Michelin expressed confidence in CEAT’s ability to continue Camso’s legacy. Nour Bouhassoun, Senior Vice President, Beyond Road Business Line at Michelin, stated, “CEAT is the right fit to carry on our compact construction equipment bias tyres and tracks business. We are committed to ensuring a smooth transition for employees, customers, and suppliers.”
The transaction, subject to regulatory approvals, marks Michelin’s strategic exit from its Compact Line bias tyres and construction tracks activities, aligning with its sustainable growth strategy.
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