Camso sold to India-based tire producer

CEAT, a portfolio company of Mumbai-based RPG Enterprises, has entered into a definitive agreement with Michelin for CEAT to acquire the Camso brand off-the-road (OTR) tire assets from Michelin in an all-cash deal valued at about $225 million.

Camso provides highway construction equipment bias-tire and tracks for OTR application, and CEAT will now have global ownership of the Camso brand and two manufacturing facilities. 

Camso, initially based in Canada, was purchased by France-based tire producer Michelin in 2018.

“Access to the most premium customers, a high-quality brand and a qualified global workforce is what excites us the most about this acquisition," says Arnab Banerjee, CEO of CEAT. "We also found high synergies between the two brands.”

CEAT itself was founded in Italy, with its acronym standing for Cavi Elettrici e Affini Torino. It was purchased by conglomerate RPG Group (now RPG Enterprises) in 1982.

According to CEAT, the Camso brand will be permanently assigned to CEAT across categories after a three-year licensing period. The Indian conglomerate says the move will expand in the OTR tire and tracks segments and also mark Michelin’s exit from activities related to compact line bias tires and construction tracks.

The acquisition of Camso will give CEAT access to a global customer base that includes more than 40 international OEMs and international OTR tire distributors. The Camso manufacturing facilities being acquired are in Sri Lanka.

“Camso is an industry leading brand in the off-highway tire market, built through many years of investment in creating product superiority and manufacturing excellence, nurtured through the Michelin parentage,” says Anant Goenka, vice chairman of RPG Enterprises.

CEAT is one of India’s leading tire companies and a producer of passenger car, two-wheeler, truck and bus, light commercial and off highway tires. In addition to tire making, RPG Enterprises has a presence in the infrastructure, pharmaceutical, hospitality and tech sectors.

“Michelin firmly believes that CEAT is the right fit to carry on our bias tires and tracks for compact construction equipment business,” says Nour Bouhassoun, senior vice president with Michelin. “Both our companies are fully committed to ensuring a smooth transition for our employees and business continuity for our customers and suppliers.”