CORPORATE
CEAT buys Camso’s OHT and track business from Michelin for Rs 1,905 crore
- IBJ Bureau
- Dec 07, 2024
Tyre-maker and RPG Group company CEAT has entered into a definitive agreement with Michelin to acquire its Camso brand’s off-highway tyres (OHT) and tracks business for about $225 million (Rs 1,905 crore).
The acquisition is significant for CEAT in its ambition to become a leading global player in the high-margin OHT segment, as it will give the company access to a global customers’ base, including over 40 international original equipment makers (OEMs) and premium international OHT distributors, the company has said in a statement.
The transaction, subject to regulatory approvals from relevant authorities, will include the business with revenues of about $213 million for CY2023 and global ownership of the Camso brand, along with two manufacturing facilities, in Sri Lanka, it has added.
Camso is a premium brand in construction equipment tyres and tracks with strong equity and market position in the EU and North American aftermarket and OE segments, the company has said.
“The Camso brand will be permanently assigned to CEAT across categories after a three-year licensing period,” it has said.
This will expand CEAT’s product portfolio in the high-margin OHT and track segment, which includes agriculture tyres and tracks, harvester tyres and tracks, power sports tracks and material-handling tyres.
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