Ceat completes acquisition of Camso, to invest $171 mn in Sri Lanka

Tyre maker CEAT has announced $171 million (around ₹1,500 crore) investment in Sri Lanka as it completes the acquisition of Michelin Group’s Camso Construction compact line business, including Sri Lanka’s Midigama plant and casting products plant in Kotugoda.

 

The announcement came post market hours. CEAT stock was up 2.38 per cent on BSE.

 

The investment is aimed at expanding manufacturing capacity for off-highway tyres (OHT) and tracks at the Midigama and Kotugoda facilities. These facilities will focus on export-oriented production.

 

In December last year, CEAT had entered into an agreement with Michelin to acquire the Camso brand’s off-highway construction equipment bias tyres and tracks business in an all-cash deal valued at $225 mn (₹1,900 crore), which includes two manufacturing facilities in Sri Lanka and the global rights to the Camso brand.

 

 

The acquired business recorded revenues of $213 million in calendar 2023.

 

This transaction also grants CEAT global ownership of the CAMSO brand, which will be permanently assigned across categories after a three-year licensing period. Michelin will exit from the activities related to compact line bias tyres and construction tracks.

 

The transaction was to be completed tentatively within 6-9 months.

 

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. With this, CEAT gains access to over 40 global OEMs and premium distributors as the Camso brand has presence in EU and North America.

 

Arnab Banerjee, MD & CEO, CEAT Limited, said, “The integration of the compact construction equipment business and the acquisition of the CAMSO brand is a pivotal step in advancing CEAT’s long-term vision of becoming a significant player in Off Highway mobility. We are confident that our enhanced strengths in products, capabilities, and markets will enable us to enter new geographies, expand our portfolio, and drive sustainable growth in the years ahead.”