CEAT Inks $225M Deal to Acquire Camso's Off-Highway Business

CEAT, a part of RPG Group, has signed an all-cash deal with Michelin to acquire the off-highway construction equipment bias tyres and tracks business under the Camso brand for $225 million. This business brings along a revenue of $213 million that the company reported in 2023, apart from two manufacturing units in Sri Lanka and the global rights to the Camso brand.

A strong brand name in the off-highway construction equipment industry, Camso has a considerable market presence both in the aftermarket and OE sectors in Europe and North America. As part of the agreement, CEAT will be granted permanent rights to use the Camso brand for all product categories after the expiration of three years from the licensing period.

The deal is set to expand CEAT’s product portfolio within the high-margin off-highway tyres (OHT) and tracks segment, encompassing agricultural tyres, harvester tyres, material handling tyres, and power sports tracks. Michelin, through this transaction, will exit its operations related to compact line bias tyres and construction tracks.  

The acquisition aligns with CEAT’s strategic focus on becoming a significant global player in the OHT segment. Over the past decade, CEAT has built an OHT business with over 900 product offerings, covering a wide range of agricultural segment requirements. With Camso, CEAT aims to enhance its product base by entering tracks and construction tyre segments while accessing a global customer base that includes over 40 international OEMs and premium distributors.  

The manufacturing facilities acquired in Sri Lanka will support this transition. Both companies have stated their commitment to ensuring a seamless transition for employees, customers, and suppliers. The deal is subject to necessary regulatory approvals.  

Anant Goenka, Vice Chairman of RPG Enterprises, stated that the acquisition is a strategic milestone for CEAT, strengthening its global presence in the tyre industry. He highlighted the compatibility between Camso and CEAT in terms of quality management and operational values.  

Arnab Banerjee, Managing Director and CEO of CEAT, described the Camso brand as a strong fit for CEAT’s growth strategy in the OHT segment. He emphasised the value of access to a premium global customer base and the technological edge offered by the track segment.  

Nour Bouhassoun, Senior Vice President of Michelin’s Beyond Road Business Line, expressed confidence in CEAT’s ability to continue the Camso business effectively. He noted that the transition aligns with Michelin’s long-term sustainable growth objectives.  

The transaction represents a significant development in the tyre industry, positioning CEAT to enhance its capabilities and market presence in the global OHT segment.