CEAT Limited — Important, 06-12-2024: Disclosure of material issue

CEAT has entered a definitive agreement to acquire the Camso brand's Off-Highway construction equipment bias tyre and tracks business from Michelin in an all-cash transaction valued at approximately USD 225 million. This deal includes business assets generating revenues of around USD 213 million for calendar year 2023, along with two advanced manufacturing facilities.

The acquisition provides CEAT with a significant opportunity to enhance its product offerings in the high-margin Off-Highway Tyres (OHT) segment and positions it to tap into a global customer base, including over 40 international OEMs and top-tier OHT distributors. CEAT's current OHT range comprises over 900 product offerings, covering a substantial portion of the agricultural segment. The Camso brand will be integrated into CEAT's portfolio after an initial three-year licensing period.

This strategic move not only aligns with CEAT’s growth objectives but also strengthens its market position in the competitive tyre landscape, marking a pivotal step towards becoming a leading global player in the OHT segment. The transaction is expected to finalize within 6-9 months, subject to regulatory approvals.