Michelin Refines Strategy with Divestment of Sri Lanka Operations

Michelin is advancing its "Michelin in Motion 2030" strategy by divesting its Midigama Tyre Division and Casting Product Division in Sri Lanka to the CEAT Group. This move includes the future transfer of the Camso brand following a three-year licensing period. The transaction, pending regulatory approval, is valued at a 4.6 EBITDA multiple.

The decision aligns with Michelin’s focus on innovation and technology, prioritizing radial tire offerings. Consequently, the company will cease bias tire production at its Olsztyn, Poland facility. This strategic shift aims to enhance the financial performance of Michelin's Specialty tire businesses, which comprise part of its third reporting segment.