CEAT and Michelin have entered into a definitive agreement for CEAT to acquire Camso brand’s Off-Highway construction equipment bias tire 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 state-of-the-art manufacturing facilities.
Camso is a premium brand in construction equipment tire and tracks with strong equity and market position in the EU and North American aftermarket and OE segments. This will expand CEAT’s product portfolio in the high margin Off-Highway Tires (OHT) and tracks segments, which includes agriculture tires and tracks, harvester tires and tracks, power sports tracks and material handling tires. Michelin will exit from the activities related to compact line bias tires and construction tracks.
The acquisition is a significant milestone for CEAT in its ambition to become a leading global player in the high margin OHT segment. Over the last decade, CEAT has been focusing on building its OHT business, which now consists of 900+ product offerings and covers around 84% of the range requirement in the agricultural segment. Camso will give CEAT the ability to widen its product base into tracks and construction tires. More importantly, it will give CEAT access to a global customer base including over 40 international OEMs and premium international OHT distributors. CEAT brings in the ability for Camso to expand to other segments such as agriculture tires. Both brands are highly complementary in their positioning and capabilities.
Amit Tolani, Chief Executive, CEAT Specialty, said: “This acquisition is a transformative step for CEAT Specialty as it significantly enhances our capabilities in the Off Highway tyres and tracks segment. By integrating Camso’s manufacturing expertise and innovation-driven approach, we are poised to provide even greater value to our customers. We look forward to building on the legacy of the Camso brand while strengthening our position as a one stop shop of all off-highway tire and track needs.”
About CEAT ( www.ceat.com)
CEAT, an RPG Company, is one of India’s leading tire companies making passenger car, two-wheeler, truck and bus, light commercial and off highway tires. It caters to leading OEMs as well as domestic and international markets, exporting to 110+ countries. CEAT is the first tire brand globally and one amongst only 33 companies in the world ever to be awarded the Deming Grand Prize for its contribution to Total Quality Management. CEAT is also the first tire brand globally to be accorded ‘Lighthouse Designation’ for adoption of Industry 4.0 technologies by the World Economic Forum.
About RPG Enterprises (www.rpggroup.com)
RPG Enterprises is one of India’s fastest-growing business groups with a market capitalization of over USD 8 billion. The group has diverse business interests in Infrastructure, Tyres, Pharma, IT, Specialty, and innovation-led technology businesses. RPG Group companies include KEC International, CEAT, Zensar Technologies, RPG Life Sciences, Harrisons Malayalam, Raychem RPG, and Spencer International Hotels.