CEAT, an RPG company and Michelin, the global leader in tires, announced today that they have entered into a definitive agreement for CEAT to acquire Camso brand’s Off-Highway construction equipment bias tire and tracks business from Michelin in an all-cash deal valued at about $225M. The transaction will include the business with revenues of around $213M for CY 2023 and global ownership of the Camso brand along with two state-of-the-art manufacturing facilities.
Camso is a premium brand in construction equipment tyre and tracks with strong equity and market position in EU and North American aftermarket and OE segments. The Camso brand will be permanently assigned to CEAT across categories after a 3- year licensing period. This will expand CEAT’s product portfolio in the high margin Off-Highway Tires (OHT) and tracks segments, which includes agriculture tires and tracks, harvester tires and tracks, power sports tracks and material handling tires. Michelin will exit from the activities related to compact line bias tires and construction tracks.
The acquisition is a significant milestone for CEAT in its ambition to become a leading global player in the high margin OHT segment. Over the last decade, CEAT has been focusing on building its OHT business, which now consists of 900+ product offerings and covers around 84% of the range requirement in the agricultural segment. Camso will give CEAT the ability to widen its product base into tracks and construction tires. More importantly, it will give CEAT access to a global customer base including over 40 international OEMs and premium international OHT distributors. CEAT brings in the ability for Camso to expand to other segments such as agriculture tyres. Both brands are highly complementary in their positioning and capabilities.
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