CEAT acquires Camso Off-Highway tyres and tracks business from Michelin in $225 Million deal

CEAT, part of the RPG Group, has entered into an agreement with Michelin to acquire the Camso brand’s off-highway construction equipment bias tyres and tracks business. The all-cash deal, valued at $225 million, includes two manufacturing facilities in Sri Lanka and the global rights to the Camso brand. The acquired business recorded revenues of $213 million in 2023.  

Camso is a prominent brand in the off-highway construction equipment sector with a strong presence in aftermarket and original equipment (OE) markets across Europe and North America. CEAT will gain permanent ownership of the Camso brand across all categories after a three-year licensing period.  

This acquisition significantly strengthens CEAT’s portfolio in the high-margin off-highway tyres (OHT) and tracks segments, which include agricultural tyres, harvester tyres, material handling tyres, and power sports tracks. Michelin will exit operations related to compact line bias tyres and construction tracks as part of its strategic focus on higher-value construction offerings, such as radial tyres and assemblies.  

The sale also includes Michelin’s Midigama Tyre Division and Casting Product Division plants in Sri Lanka. These facilities will enable CEAT to expand its capabilities in the OHT segment while ensuring business continuity for Michelin customers and job security for the 1,587 employees involved. Both companies have committed to a seamless transition, which is subject to regulatory approvals.  

Over the past decade, CEAT has built a diverse OHT business with over 900 product offerings, covering a wide range of agricultural needs. The addition of Camso enhances its product base by integrating tracks and construction tyres. Moreover, CEAT will gain access to a global customer base, including more than 40 international OEMs and premium distributors.  

Arnab Banerjee, Managing Director and CEO of CEAT, described the acquisition as a vital step in CEAT’s growth strategy. He noted the Camso brand’s technological strength and its fit with CEAT’s long-term goals. Anant Goenka, Vice Chairman of RPG Enterprises, highlighted the shared operational values and quality focus between the two brands, emphasizing the strategic importance of the acquisition.  

For Michelin, the sale is part of a broader plan to realign its construction activities around high-value segments. Michelin will continue its manufacturing operations in Sri Lanka, focusing on modernizing its facilities and improving performance.  

Nour Bouhassoun, Senior Vice President of Michelin’s Beyond Road Business Line, expressed confidence in CEAT’s ability to handle the transition while ensuring continuity for employees, customers, and suppliers.

This acquisition underscores CEAT’s ambition to enhance its global standing in the OHT market, while allowing Michelin to sharpen its focus on value-accretive construction products.