CEAT to acquire Camso’s off-highway tyre and tracks business from Michelin for $225 million

Homegrown tyre major CEAT Ltd on Friday (December 6) announced that its board of directors has approved the acquisition of Camso brand’s Off-Highway construction equipment bias tyre and tracks business from Michelin. The transaction, valued at approximately $225 million, is set to be completed within 6-9 months, subject to regulatory approvals.

“This is to inform you that the board of directors at its meeting held today accorded its consent for inter-alia entering into a definitive agreement(s) with associate companies in the Michelin Group for the acquisition of Camso brand’s Off-Highway construction equipment tyre and tracks business, through one or more subsidiaries to be incorporated by the company,” CEAT said in a regulatory filing.

The business acquisition includes Camso’s assets, which generated revenues of $213 million in 2023, as well as two manufacturing facilities located in Sri Lanka. Additionally, CEAT will gain global ownership of the Camso brand after an initial three-year licensing period.

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The business spans a wide range of products, including agriculture tyres, harvester tyres, power sports tracks, and material handling tyres. The acquisition aligns with CEAT’s strategy to expand its Off-Highway Tyre (OHT) segment, which already includes over 900 products.

This move will allow the company to broaden its product offering into construction tyres and bias tracks, tapping into new markets, including international OEMs and premium OHT distributors.

Notably, the transaction is not a related party deal, and there is no involvement from CEAT’s promoter group in the acquired assets. The acquisition is expected to solidify CEAT’s position in the OHT market, particularly in Europe and North America, where the Camso brand holds strong equity.

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Shares of CEAT Ltd ended at ₹3,092.10, up by ₹5.55, or 0.18% on the BSE.