CEAT to Acquire Michelin's Construction Tyre Business for $225 Million.

Mumbai-based tyremaker CEAT Ltd, backed by the RP Group, has announced plans to acquire Michelin’s Camso off-highway construction equipment bias tyre and tracks business in a deal valued at $225 million.

The acquisition includes two manufacturing facilities in Sri Lanka and global ownership of the Camso brand after an initial three-year licensing period.

The Camso business, which reported revenues of $213 million in 2023, is a significant move for CEAT in expanding its global footprint. Michelin had acquired Camso in 2018 for $1.36 billion when the brand had annual sales of $1 billion.

“This acquisition has significant strategic consequences for CEAT as it catalyses the company’s journey towards being a leading tyre maker globally. Camso is an industry-leading brand in the off-highway tyre market, built through many years of investment in creating product superiority and manufacturing excellence,” said Anant Goenka, Vice-Chairman of RPG Enterprises.

The deal, expected to be completed within six to nine months, positions CEAT to strengthen its presence in the European and North American aftermarket and original equipment (OE) segments. Camso’s product portfolio includes tyres and tracks for construction, agriculture, power sports, and material handling equipment.

Michelin sees CEAT as the right partner to carry forward Camso’s legacy. “Both our companies are fully committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers,” said Nour Bouhassoun, Senior Vice President, Beyond Road Business Line at Michelin.

Despite the acquisition, CEAT faces challenges, having recently reported a 41.8% year-on-year decline in consolidated net profit to ₹121 crore for the quarter ending September 30, 2024. This compares to a ₹208 crore profit in the same period last yea

The move aligns with Michelin’s ongoing strategy to reshape its Beyond Road business for sustainable growth while enabling CEAT to expand its off-highway offerings and enhance its global market share.

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