Titan International said it has agreed to sell its Italtractor ITM undercarriage business to USCO S.p.A. in a transaction that could deliver as much as $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 from closing adjustments based on ITM’s net asset and financial position. In addition, Titan said it has received or expects to receive $49 million in dividends from ITM, including $38 million already 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 serving agricultural, construction and consumer markets. The company also said it expects to use part of the proceeds to reduce debt and strengthen its balance sheet.
The company said the transaction is expected to close early in January 2027, subject to regulatory approvals and other closing conditions.
Titan Chairman Maurice M. Taylor Jr. said the deal was first discussed with the board more than 10 years ago, when ITM was approached with an offer of less than $100 million. He said the new agreement reflects a “fair price” and leaves USCO with a “strong track manufacturing business.”
Chief Executive Paul Reitz said the sale is an important step in Titan’s transformation. He said it will allow the company to focus its people, capital and resources on its core operations while also creating room for accretive acquisitions, strategic partnerships and debt reduction.
Titan said ITM serves construction, mining, forestry, road-building and agricultural customers through a global manufacturing and distribution network. 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.
