CEAT Acquires Michelin’s Camso Bias Tyre and Tracks Business in $225M Deal

In a landmark move, CEAT, part of RPG Enterprises, has announced the acquisition of Michelin’s Camso brand Off-Highway construction equipment bias tyre and tracks business. The $225 million all-cash deal underscores CEAT’s ambition to become a leading global player in the Off-Highway Tyre (OHT) segment.

This transaction will see CEAT taking ownership of the Camso brand, two state-of-the-art manufacturing facilities in Sri Lanka, and a business generating $213 million in revenues for 2023. The deal also gives CEAT access to Camso’s strong market position in Europe and North America, covering aftermarket and Original Equipment (OE) segments.

Expanding CEAT’s Global Footprint in OHT

For CEAT, the acquisition is a strategic milestone in its journey to build a globally recognised OHT portfolio. Over the past decade, CEAT has built a robust product line with over 900 offerings, covering 84% of the agricultural segment. The addition of Camso’s bias tyres and tracks will significantly expand CEAT’s presence in construction equipment, harvester tyres and tracks, and powersports segments.

Arnab Banerjee, Managing Director & CEO of CEAT, highlighted the strategic fit:

“The Camso brand is an excellent fit with the growth strategy of CEAT’s Off-Highway Tyre business, thereby improving our margin profile. Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition. 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.”

Global Impact with Local Expertise

The deal also aligns with Michelin’s strategy to reshape its Beyond Road business. By divesting its bias tyres and tracks for compact construction equipment, Michelin ensures business continuity while focusing on sustainable growth. Nour Bouhassoun, Senior Vice President, Beyond Road Business Line at Michelin, commented:

“Michelin firmly believes that CEAT is the right fit to carry on our bias tyres and tracks for 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.”

A Shared Vision for Excellence

The acquisition reflects a shared commitment between CEAT and Michelin to ensure smooth integration for employees, suppliers, and customers. Anant Goenka, Vice Chairman of RPG Enterprises, expressed confidence in the cultural alignment between the two companies:

“This acquisition has significant strategic consequence for CEAT as it catalyses 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.”

The Road Ahead

CEAT plans to permanently acquire the Camso brand across all categories after a three-year licensing period. This will strengthen CEAT’s ability to cater to high-margin segments while maintaining a focus on sustainable, high-performance solutions for its global customer base.

The transaction is subject to regulatory approvals and marks a transformative chapter for both CEAT and Michelin in the competitive OHT market.

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