Camso Acquisition: A Long-Term Positive for Ceat

Tyre major Ceat has completed the acquisition of the Camso brand from Michelin at a valuation of $225 million.

- DEVANGSHU DATTA

The acquired business focuses on compact construction tyres and tracks with an estimated revenue run rate of $130-150 million, at 50 per cent utilisation and an addressable market of $2 billion.

Camso's market share in compact construction premium tracks is 20 per cent while it is 10 per cent in the overall segment. The acquisition includes global ownership of the Camso brand along with two manufacturing facilities. Overall, Ceat's share of the high-margin OHT (off-highway tyres) and its international presence shall improve from 15 per cent and 19 per cent to 21 per cent and 25 per cent, respectively.

The initial focus is on ramping up capacity. After three years, it shall foray into agriculture tracks, harvester tracks, and power sport tracks.