Ceat, part of RPG Enterprises, has agreed to acquire the Camso brand of construction bias tyres and tracks from Michelin.
The all-cash deal, valued at $225m, includes revenues of $213m for 2023, ownership of the Camso brand and two manufacturing plants.
It will expand Ceat’s product portfolio in the off-highway tyres and tracks segments, with the brand being permanently assigned to the company after a three-year licensing period.
Anant Goenka, vice chairman, RPG Enterprises, said: “This acquisition has significant strategic consequences for Ceat as it catalyzes the company’s journey towards being a leading tyre maker globally.
“Camso is an industry leading brand in the Off-Highway Tyre market built through many years of investment in creating product superiority and manufacturing excellence, nurtured through the Michelin parentage. Most importantly, we found a great cultural alignment between Camso and CEAT
because of our TQM way of working.”
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, Ceat and Camso, and are confident that both will benefit tremendously from their complementary capabilities and positioning.”
Nour Bouhassoun, senior vice president, Beyond Road Business Line at Michelin, said: “Michelin firmly believes that Ceat is the right fit to carry on our bias tyres and tracks for compact construction equipment business.
“Both our companies are fully committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers. With this operation, Michelin is continuing to reshape its Beyond Road business, in line with the Group’s sustainable growth strategy.”
For more information go to www.ceat.com