CEAT enters into definitive agreement with Michelin

Ceat Ltd. | Tyres & Allied | Automobiles | BSE: 500878 | NSE: CEATLTD

07 Dec 2024 Evaluate

CEAT and Michelin have entered into a definitive agreement for CEAT to acquire Camso brand’s Off-Highway construction equipment bias tyre and tracks business from Michelin in an all-cash deal valued at about $225 million. The transaction will include the business with revenues of around $213 million 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 the company across categories after a 3-year licensing period. This will expand the company’s product portfolio in the high margin Off-Highway Tyres (OHT) and tracks segments, which includes agriculture tyres and tracks, harvester tyres and tracks, power sports tracks and material handling tyres. Michelin will thus exit from the activities related to Compact Line bias tyres and Construction tracks.

Both CEAT and Michelin are committed to a coordinated and smooth transition for customers, suppliers and all employees. The manufacturing facilities being acquired are located in Sri Lanka.

CEAT is among the best tyre manufacturers in India. It manufactures a wide range of tyres for two-wheelers, three-wheelers, four-wheelers, tractors and tippers and trucks. Besides tyres, the company also manufactures and markets tubes and flaps.