CEAT has finalized a deal to acquire Michelin’s Camso brand’s off-highway construction equipment bias tire and tracks business in an all-cash transaction valued at approximately $225 million.
The acquisition includes a business generating around $213 million in revenue for the calendar year 2023, as well as global ownership of the Camso brand.
Additionally, CEAT will also gain two manufacturing facilities based in Sri Lanka.
Expansion into Off-Highway Tire and Tracks Market
The acquisition will significantly strengthen CEAT’s presence in the off-highway tire (OHT) and tracks segments, which include agricultural tires and tracks, harvester tires and tracks, power sports tracks, and material handling tires.
CEAT’s product portfolio now covers over 900 products, meeting about 84% of the agricultural segment’s range requirements.
The deal also provides CEAT with access to a global customer base, including over 40 international OEMs and OHT distributors.
Camso Brand and Transition
As part of the deal, Michelin will exit the compact line bias tires and construction tracks business.
The Camso brand will be fully integrated into CEAT’s portfolio after a three-year licensing period.
CEAT has also stated that the acquisition will allow the company to expand its reach in the growing OHT market, further strengthening its position in the global market.
Strategic Synergies
Arnab Banerjee, Managing Director and CEO of CEAT, expressed confidence in the synergy between CEAT and Camso, highlighting that the limited number of global players in the track segment presents a unique opportunity for growth.
He believes the complementary capabilities of both brands will lead to mutual benefits.
Commitment to Smooth Transition
Michelin has reaffirmed its belief that CEAT is the right partner to continue its bias tires and tracks business for compact construction equipment.
As reported by tirereview.com, Nour Bouhassoun, Senior Vice President of Michelin’s Beyond Road Business Line, emphasized both companies’ commitment to ensuring a smooth transition for employees and maintaining business continuity for customers and suppliers.
