CEAT has entered into a definitive agreement with Michelin for CEAT to acquire the Camso brand off-the-road (OTR) tyre assets from Michelin in a deal valued at about $225 million
CEAT takes CAMSO as Michelin drops bias tyres
Camso provides highway construction equipment bias-tyre and tracks for OTR application, and CEAT will now have global ownership of the Camso brand and two manufacturing facilities.
“Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition,” says Arnab Banerjee, CEO of CEAT. “We also found high synergies between the two brands.”
According to CEAT, the Camso brand will be permanently assigned to CEAT across categories after a three-year licensing per
iod. The Indian conglomerate says the move will expand in the OTR tyre and tracks segments and also mark Michelin’s exit from activities related to compact line bias tyres and construction tracks.
The acquisition of Camso will give CEAT access to a global customer base that includes more than 40 international OEMs and international OTR tyre distributors. The Camso manufacturing facilities being acquired are in Sri Lanka.
“Camso is an industry leading brand in the off-highway tire market, built through many years of investment in creating product superiority and manufacturing excellence, nurtured through the Michelin parentage,” says Anant Goenka, vice chairman of RPG Enterprises, owners of the CEAT operation.
“Michelin firmly believes that CEAT is the right fit to carry on our bias tires and tracks for compact construction equipment business,” says Nour Bouhassoun, senior vice president with Michelin. “Both our companies are fully committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers.”
