Ceat the Indain tyre company backed by RP Group will acquire Camso brand’s off-highway construction equipment bias tyre and tracks business from Michelin for $225 million.
The deal between Michelin and Ceat includes two manufacturing facilities also with global ownership of the Camso brand after an initial 3 year licensing period. It is said that the full cash deal will be complated within 9 months or a mutually agreed by both the companies.
Michelin had acquires Camso brand in 2018 for $1.36 billion at that time it had sales of $1 billion now the business had revenues of $213 million in FY23
“This acquisition has significant strategic consequences for CEAT as it catalysed the company’s journey towards being a leading tyre maker globally. Camso is an industry-leading brand in the off-highway tyre 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,” said Anant Goenka, Vice-Chairman of RPG Enterprises.
About Camso Brand
Camso which have a strong equity in EU and North American aftermarket and OE segments is a premium brand in construction tyres and tracksWith the acquisition, CEAT is targeting to expand its portfolio (presently consists of over 900 products) in the off-highway tyres and tracks segments including agriculture equipment, harvesters, power sports tracks and material handling tyres. The business has two manufacturing facilities located in Sri Lanka.
What Michelin said about this acquisition.
“Michelin firmly believes that CEAT is the right fit to carry on our bias tyres and tracks for the 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,” said Nour Bouhassoun, Senior Vice President, Beyond Road, Business Line at Michelin.
Mumbai-headquartered CEAT Ltd had reported a 41.8 per cent dip in consolidated net profit at ₹121 crore in the quarter ended September 30, 2024 as against ₹208 crore reported in the same quarter last year.
The brand will give CEAT the ability to widen its product base into tracks and construction tyres. More importantly, it will give the company access to a global customer base including over 40 international OEMs and premium international OHT Distributors.
