CEAT, an RPG Group company, has entered into a definitive agreement with Michelin to acquire the Camso brand’s Off-Highway construction equipment bias tyre and tracks business in an all-cash deal valued at approximately $225 million. The transaction includes the Camso business, which generated revenues of $213 million in 2023, along with two advanced manufacturing facilities and global ownership of the Camso brand.
Camso is recognized as a premium player in construction equipment tyres and tracks, holding a strong market position in the European and North American aftermarket and OEM segments. Post-acquisition, CEAT will gain permanent ownership of the Camso brand across categories following a three-year licensing period. This acquisition significantly strengthens CEAT’s position in the high-margin Off-Highway Tyres (OHT) and tracks segments, encompassing agriculture tyres, harvester tracks, powersports tracks, and material handling tyres.
The acquisition marks Michelin’s exit from the Compact Line bias tyres and construction tracks business, aligning with its strategic focus.
Strategic Expansion for CEAT
For CEAT, the acquisition represents a pivotal step toward becoming a global leader in the OHT market. Over the past decade, CEAT has built an extensive portfolio of over 900 OHT products, covering approximately 84% of agricultural segment requirements. Integrating Camso into its operations will allow CEAT to expand into tracks and construction tyres while accessing a premium customer base of over 40 international OEMs and top-tier OHT distributors.
“This acquisition is a game-changer for CEAT, accelerating our journey to becoming a global leader in the tyre industry,” said Anant Goenka, Vice Chairman, RPG Enterprises. “Camso is a market-leading brand with a legacy of product excellence and innovation. We also discovered a strong cultural alignment with Camso, which shares our Total Quality Management (TQM) philosophy.”
Arnab Banerjee, MD & CEO, CEAT, added, “The Camso brand complements CEAT’s growth strategy in the OHT business, improving our margins and technological capabilities. The track segment represents a unique opportunity for us to tap into a highly specialized market. We are confident that the synergies between CEAT and Camso will drive tremendous mutual benefits.”
Michelin’s Perspective
For Michelin, the transaction aligns with its long-term goals of reshaping its Beyond Road business to focus on sustainable growth.
Nour Bouhassoun, Senior Vice President, Beyond Road Business Line at Michelin, stated, “CEAT is an ideal partner to take forward our bias tyres and compact construction tracks business. Both companies are committed to ensuring a seamless transition for employees, customers, and suppliers.”
The acquired manufacturing facilities, located in Sri Lanka, will enhance CEAT’s production capabilities. The deal is subject to necessary regulatory approvals.
This acquisition underscores CEAT’s commitment to expanding its global footprint, leveraging complementary strengths, and delivering value to stakeholders in the competitive OHT market.