Ceat acquiring Camso brand, units from Michelin

Mumbai, India – Ceat Ltd is to acquire the Camso off-highway construction equipment bias tire and tracks business from Michelin, the parties announced 6 Dec.

With the $225-million (€212 million) acquisition, the Indian tire maker will gain global ownership of the Camso brand along with two manufacturing facilities in Sri Lanka.

Ceat said it “tentatively” expects the transaction to be completed within six-to-nine months – subject to it gaining various approvals. 

Ownership of the Camso brand will follow a three-year licensing period, added Ceat, noting that the acquired operations generated 2023 sales of $213 million.

The deal includes Michelin's Sri Lanka-based Midigama Tyre Division and Casting Product Division plants that manufacture bias tires and tracks for compact construction equipment.

Michelin will thus exit from the activities related to compact line bias tires and construction tracks, explained the joint statement.

Ceat said the move will expand its portfolio in the high-margin off-highway tires (OHT) and track segments, including agriculture tires and tracks, power-sports tracks and materials-handling equipment tires.

The acquisition will bolster Ceat’s OHT portfolio which, it said, already comprises over 900 products and covers around 84% of the range-requirement in the agricultural segment.

Moreover, Camso will give Ceat access to a global customer-base, including over 40 international OEMs and international OHT distributors.

“The Camso brand is an excellent fit with the growth strategy of Ceat’s off-highway tire business, thereby improving our margin profile,” said Arnab Banerjee, managing director & CEO, Ceat.

According to the Ceat leader, Camso’s track business operates in “a technologically superior segment” with a limited number of global players.

For its part, Michelin said it will mainly offer its radial technology tires to the construction market and end production of bias tires at its Olsztyn factory in Poland.

With the divestment, Michelin said it is continuing to “reshape” it’s 'beyond road' business, in line with the group's sustainable growth strategy.

Michelin acquired Magog, Quebec-based Camso for $1.36 billion in late 2018 to expand its off-road product offerings.