CEAT, a prominent player in the tyre industry, has acquired Camso's Off-Highway construction equipment bias tyre and tracks business from Michelin in a deal valued at approximately $225 million.
This acquisition allows CEAT to expand its product portfolio and tap into a global customer base that includes over 40 international original equipment manufacturers (OEMs) and premium Off-Highway Tyres (OHT) distributors.
The Camso brand, known for its premium quality in the construction equipment tyre and tracks market, will be permanently assigned to CEAT after a three-year licensing period.
CEAT's focus on building its OHT business over the past decade has resulted in over 900 product offerings and meeting approximately 84% of the agricultural segment's range requirements.
The addition of Camso's brand will enhance CEAT's existing portfolio and provide opportunities for expansion into other segments, particularly agriculture tyres.
Michelin's divestiture of its activities related to Compact Line bias tyres and construction tracks allows CEAT to leverage its expertise and market presence to drive growth in the OHT sector.
The acquisition positions CEAT to better compete in the growing OHT market, and its expanded product portfolio and established distribution channels will enable the company to effectively respond to market demands.
CEAT's long-term vision of enhancing its global footprint and increasing its market share in the OHT segment aligns with the strategic acquisition of Camso's Off-Highway business.
The integration of advanced manufacturing capabilities from the acquired facilities will contribute to improved operational efficiencies and product innovation.
The synergy between CEAT and Camso is expected to create a robust platform for future growth in the global tyre market.