CEAT in talks to acquire Camso’s off-highway tyre and tracks business

9 Dec 2024 , 07:25 AM

CEAT Ltd, a domestic tire company, stated that its board of directors has approved the acquisition of Michelin’s Off-Highway construction equipment bias tyre and tracks business under the Camso brand. The company said that the purchase is estimated at roughly $225 million. The transaction is expected to be finalized within 6-9 months, subject to regulatory approvals.

The acquisition comprises Camso’s assets, which generated $213 million in revenue in 2023, as well as two manufacturing sites in Sri Lanka. CEAT will also acquire global ownership of the Camso brand after a three-year licensing agreement. 

Agriculture tyres, harvester tyres, power sports tracks, and material handling tyres are among the company’s many products. The acquisition is consistent with CEAT’s objective to grow its Off-Highway Tyre (OHT) category, which currently encompasses over 900 items.

This move will help the company to expand its product line to include construction tires and bias tracks, as well as enter new markets like as international OEMs and premium OHT distributors.

Notably, the sale is not a related party transaction, and CEAT’s promoter group has no relationship with the acquired businesses. The acquisition is expected to strengthen CEAT’s position in the OHT industry, especially in Europe and North America, where the Camso brand has a significant presence.

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