CEAT to take over Michelin’s Camso off-highway tyre division in US $ 225mn deal

Transaction will include business with revenues of around US $ 213mn (Rs.62bn) in CY 2023 and global ownership of Camso brand
Camso brand will be permanently assigned to CEAT across categories after a 3-year licensing period
Transaction will be subject to regulatory approvals from relevant authorities
CEAT and Michelin announced yesterday that CEAT has agreed to acquire Michelin’s Camso brand off-highway construction equipment bias tyre and tracks business in Sri Lanka, in an all-cash deal valued at US $ 225 million.
The acquisition includes the global rights to the Camso brand, two advanced manufacturing facilities in Sri Lanka and a business generating revenues of US $ 213 million (Rs.62 billion) in 2023. The transaction is subject to regulatory approval, the companies said in a joint statement.
Camso, a premium brand in the construction equipment tyre and tracks market, is well-established in the European and North American aftermarket and original equipment (OE) segments. CEAT will secure permanent rights to the brand across categories after a three-year licensing period, significantly expanding its portfolio in the high-margin off-highway tyres (OHT) and tracks segment. This includes products for agriculture, harvesters, power sports and material handling.
In a separate statement, Michelin said it would focus on its most value accretive offers for Construction application. These include radial tyres, solid tyres and assemblies. Michelin will thus exit from its activities related to Compact Line bias tyres and Construction tracks.
“The group also intends to continue its other manufacturing activities in Sri Lanka. The country remains important for Michelin, where the company plans to continue modernising its production facilities alongside improving performance – as everywhere in the group,” Michelin said.
Both companies emphasised that the deal will not result in job losses. CEAT and Michelin will collaborate to ensure a smooth handover for all 1,587 employees at the Midigama tyre division and casting product division plants, alongside the related support functions.
“Michelin and CEAT will work together to implement appropriate measures for all employees, creating the right conditions for a smooth handover,” Michelin said, adding that it would continue to support its teams in Sri Lanka to maintain competitive operations.
CEAT, which has been manufacturing tyres in Sri Lanka for over three decades through a joint venture with Kelani Tyres PLC since 1998, is the market leader in truck tyres and has a strong presence in the passenger car and two-wheeler tyre markets.
“CEAT is committed to growing its investments in Sri Lanka and remains steadfast in its role as a responsible participant in the nation’s economic activity and growth. This acquisition paves the way for enhancing valuable foreign exchange earnings in Sri Lanka besides contributing to direct and indirect employment opportunities,” CEAT said.
The acquisition is a significant milestone in CEAT’s ambitions to become a global leader in the OHT market. Over the past decade, the company has built a portfolio of over 900 products, covering approximately 84 percent of the range requirements in the agricultural segment.