CEAT and Michelin have entered into a definitive agreement for CEAT to acquire the Camso brand’s off-highway construction equipment bias tyre and tracks business from Michelin in an all-cash deal valued at about $225 million. The transaction will include the business with revenues of around $213 million for CY 2023 and global ownership of the Camso brand along with two manufacturing facilities in Sri Lanka.
Camso is a construction equipment tyre and tracks manufacturer with a market position in the European Union and North American aftermarket and OE segments. The Camso brand will be permanently assigned to CEAT across categories after a three-year licensing period. CEAT said this will expand its product portfolio in the off-highway tyres (OHT) and tracks segments, which includes agriculture tyres and tracks, harvester tyres and tracks, power sports tracks and material handling tyres. Michelin said it will exit from the activities related to compact line bias tyres and construction tracks.
CEAT said over the last decade it has been focusing on building its OHT business, which now consists of over 900 product offerings and covers around 84% of the range requirement in the agricultural segment. Camso will give will give CEAT access to a global customer base including over 40 international OEMs and international OHT Distributors, according to the manufacturer.
“The track segment has a limited number of global players. We found high synergies between the two brands, CEAT and Camso, and are confident that both will benefit from complementary capabilities and positioning,” said Arnab Banerjee, MD & CEO, CEAT.
“Michelin firmly believes that CEAT is the right fit to carry on our bias tyres and tracks for compact construction equipment business,” said Nour Bouhassoun, senior vice president, beyond road business line at Michelin. “Both our companies are committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers.”
