Michelin, a prominent French tire manufacturer, operates globally, producing and selling various tires under its well-known brand. In addition to its primary products, Michelin has several subsidiary tire brands, such as BFGoodrich, Riken, Kormoran, Taurus, and Camso.
These subsidiaries enable Michelin to tap into different market segments, including more affordable and specialized tire options. Many of these sub-brands have been integrated into Michelin’s lineup through acquisitions, such as the $1.45 billion purchase of Camso in 2018, a leading Canadian specialty tire manufacturer.
Camso specializes in off-road and performance-driven tires, catering to a variety of vehicles such as construction machinery, agricultural equipment, and snowmobiles. With revenues exceeding $1 billion and 26 production plants globally, including locations in Vietnam and Sri Lanka, Camso has a significant presence in the tire industry.
After more than six years of being part of Michelin, the company announced in 2024 its decision to sell Camso to Indian tire manufacturer Ceat, citing a strategic shift towards radial tires and a cessation of bias tire production as the rationale behind the sale. Notably, not all Camso assets acquired in 2018 are included in this transaction.
Understanding Michelin’s Decision to Sell Camso to Ceat
It is crucial to understand that only a fraction of Camso’s assets are being sold to Ceat. This transaction encompasses the rights to the Camso brand as well as two manufacturing sites located in Sri Lanka. The majority of the assets that were part of Michelin’s 2018 acquisition will remain under Michelin’s control, including Camso’s headquarters and facilities in Magog, Canada.
The sale involves an all-cash agreement, valued at approximately $225 million, marking Michelin’s complete withdrawal from the bias tire and construction track segments. Ceat will gain access to Camso’s established global network of over 40 original equipment manufacturers (OEMs) and off-the-road (OTR) distributors. Additionally, Ceat will have a three-year license to use the Camso brand before integrating it into its own brand lineup.
This decision aligns with Michelin’s “Michelin in Motion 2030” growth strategy, focusing on sustainable development and emphasizing a shift away from bias tire production towards radial technology. Notably, Michelin’s facility in Olsztyn, Poland, which produces bias tires, will also cease operations as part of this transition.
