Clermont-Ferrand – December 6, 2024
Michelin pursues its “Michelin in Motion 2030” strategy and focuses its activities in the construction market on its most valued offerings
The Michelin Group is selling its Sri Lanka-based Midigama Tyre Division and Casting Product Division plants that manufacture bias tires and tracks for compact construction equipment, to the CEAT Group, a recognized player that is a better fit to these activities. The sale also includes the Camso brand, a renowned brand in these segments, at the end of a three-year licensing period. The transaction, which remains subject to regulatory approvals from the relevant authorities, is valued at an EBITDA multiple of 4.6 (adjusted EBITDA 2023).
The decision is aligned with the Michelin in Motion 2030 sustainable growth strategy, which focuses the Group’s efforts where its innovations and technologies are the most valued. The Michelin Group will thus continue to mainly offer its radial technology tires to the addressed market and will, as a result, stop the production of bias tires in its Olsztyn factory in Poland.
This transaction will help strengthen the financial performance of the Specialty tire businesses, part of the Group's third Reporting Segment (RS3): the divested or discontinued activities, which account for around 3% of RS3 net sales, generate profitability well below the RS3 average.
| Investor Relations investor-relations@michelin.com Guillaume Jullienne guillaume.jullienne@michelin.com Flavien Huet flavien.huet@michelin.com Benjamin Marcus benjamin.marcus@michelin.com | Media Relations +33 (0) 1 45 66 22 22 groupe-michelin.service.de.presse@michelin.com Individual Shareholders +33 (0) 4 73 32 23 05 Muriel Floc-Hlay muriel.floc-hlay@michelin.com Elisabete Antunes elisabete.antunes@michelin.com |
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This press release may contain a number of forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions at the time of publishing this document, they are by nature subject to risks and contingencies liable to translate into a difference between actual data and the forecasts made or inferred by these statements.
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