Titan International said it has agreed to sell its Italtractor ITM undercarriage business to USCO S.p.A. in a transaction that could deliver up to about $285 million in total cash value.
The deal includes an initial purchase price of $207 million, plus up to $6 million in earnout proceeds tied to ITM’s 2026 performance. Titan also expects about $23 million of additional cash value from closing adjustments based on ITM’s net asset and financial position. On top of that, Titan has already received or expects to receive $49 million in dividends from ITM, including $38 million collected in recent years and another $11 million before closing.
Titan said the transaction is expected to close early in January 2027, pending regulatory approvals and other customary conditions.
The sale marks a major portfolio shift for Titan, which said it will use the proceeds to sharpen its focus on its core wheel and tire operations serving agricultural, construction and consumer markets. The company also said it plans to use part of the cash to reduce debt and strengthen its balance sheet.
The move comes after Titan said it had already received $38 million in dividends from ITM in recent years, with another $11 million expected before closing. Combined with the sale proceeds and earnout, Titan said the transaction could bring in roughly $285 million in total cash value.
Titan said it expects to pursue future capital deployment through accretive acquisitions, strategic partnerships and other growth investments after the deal closes. 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. For more information, read the company's full 8-K submission here.
