CEAT, a leading brand under RPG Group, is set to acquire Michelin’s Camso brand for $225 million. This strategic move includes Michelin’s off-highway tyres and tracks business, two manufacturing units in Sri Lanka, and global rights to the Camso brand. With this acquisition, CEAT aims to strengthen its position in the global off-highway tyres (OHT) market.
CEAT to expand with Michelin’s Camso brand
The acquisition of Michelin’s Camso brand will bolster CEAT’s portfolio in the off-highway tyres and tracks segment. Camso, a recognised name in Europe and North America, has a strong presence in both aftermarket and original equipment (OE) sectors.
The deal includes a three-year licensing period, after which CEAT will gain permanent global rights to the Camso brand for all product categories. Camso’s business, which generated $213 million in 2023, enhances CEAT’s growth trajectory in high-margin segments.
CEAT to lead Off-highway tyres segment
By acquiring Michelin’s Camso brand, CEAT aims to lead the OHT segment globally. CEAT’s portfolio already includes over 900 products catering to agricultural, material handling, and power sports needs. Adding Camso will enable CEAT to expand into tracks and construction tyres, offering a wider range to international markets.
This acquisition also grants CEAT access to over 40 international OEMs and premium distributors, ensuring broader market reach. Meanwhile, Michelin plans to exit the compact line bias tyres and construction tracks business to focus on sustainable growth strategies.
Manufacturing units in Sri Lanka to boost CEAT
The inclusion of two manufacturing units in Sri Lanka strengthens CEAT’s production capabilities. These facilities are expected to play a crucial role in supporting the transition and expanding CEAT’s footprint in global markets. Both CEAT and Michelin have committed to a smooth transition for employees, suppliers, and customers.
CEAT’s leadership on the Camso acquisition
Anant Goenka, Vice Chairman of RPG Enterprises, described the acquisition as a strategic milestone for CEAT. He noted the compatibility between the Camso brand and CEAT’s operational goals. Arnab Banerjee, Managing Director and CEO of CEAT, highlighted that Camso provides access to premium technology and a strong customer base.
Michelin’s Senior Vice President, Nour Bouhassoun, expressed confidence in CEAT’s ability to sustain and grow the Camso business while ensuring sustainability.
Conclusion
The $225M acquisition of Michelin’s Camso brand positions CEAT as a global leader in the OHT industry. This move strengthens CEAT’s product offerings, manufacturing capabilities, and market presence, setting the stage for long-term growth.
