CEAT acquires CAMSO business from Michelin in SL

CEAT, an RPG company and Michelin, the global leader in tyres, announced that they have entered into a definitive agreement for CEAT to acquire Camso brand’s Off-Highway construction equipment bias tyre and tracks business from Michelin in an all-cash deal valued at about $225 Mn (SLR 65 Bn).

The transaction will include the business with revenues of around $213 Mn (SLR 62 Bn) in 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 tyre and tracks with strong equity in EU and North American aftermarket and OE segments.  The Camso brand will be permanently assigned to CEAT across categories after a 3-year licensing period. This will expand CEAT’s product portfolio in the high margin Off-Highway Tyres (OHT) and tracks segments, which includes agriculture tyres and tracks, harvester tyres and tracks, power sports tyres and material handling tyres.  Michelin will thus exit from the activities related to Compact Line bias tyres and Construction tracks.

CEAT has been investing in Sri Lanka for more than three decades and manufactures over half of the country’s tyre requirements after its joint venture in Sri Lanka with Kelani Tyres PLC, since 1998, is the market leader in many segments. The acquisition is also a significant milestone for CEAT in its ambition to become a leading global player in the high margin OHT segment.

Both CEAT and Michelin are committed to a coordinated and smooth transition for customers, suppliers and all employees. Arnab Banerjee, MD & CEO, CEAT, said: “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.’’

‘’The track segment is a technologically superior segment with a limited number of global players. We also found high synergies between the two brands.”

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