Titan International said it has signed a definitive agreement to sell its Italtractor ITM undercarriage business to USCO S.p.A. for a transaction that could deliver up to about $285 million in total cash value.
The deal calls for an initial $207 million purchase price, plus as much as $6 million in earnout proceeds tied to ITM’s 2026 performance. Titan also expects roughly $23 million of additional cash value from closing adjustments tied to ITM’s net asset and financial position. On top of that, Titan said it has received or expects to receive $49 million in dividends from ITM, including $38 million received in recent years and another $11 million expected before closing.
Titan said the sale will let it focus on its core wheel and tire businesses and strengthen its balance sheet. The company said it plans to use part of the proceeds to reduce debt and pursue growth investments, including acquisitions and strategic partnerships.
Chairman Maurice M. Taylor Jr. said the deal was first discussed with the board more than 10 years ago, when Titan was approached with an offer of less than $100 million. He said the current transaction reflects a fair price and noted that Titan has bought back more than $100 million of its common stock over the last few years.
Chief Executive Paul Reitz said the sale will allow Titan to concentrate resources on its core operations and give it more financial capacity to pursue accretive growth opportunities and reduce debt.
Titan expects the transaction to close early in January 2027, subject to regulatory approvals and other customary closing conditions. As a result of these announcements, the company's shares have moved -2.35% on the market, and are now trading at a price of $7.07. Check out the company's full 8-K submission here.
