Titan International said it will sell its Italtractor ITM undercarriage business to USCO S.p.A. in a deal that could deliver up to about $285 million in total cash value.
The package starts with a $207 million purchase price. Titan said it also could receive up to $6 million in earnout proceeds tied to ITM’s 2026 performance. In addition, Titan expects roughly $23 million from closing-date net asset and financial position adjustments. Titan said it has already received, or expects to receive, $49 million in dividends from ITM, made up of $38 million received in recent years and another $11 million expected before closing.
Titan said the transaction is expected to close early in January 2027.
The sale comes after Titan said it was first approached about ITM more than 10 years ago with an offer of less than $100 million, highlighting how the valuation has increased over that period.
Titan said the divestiture will let it concentrate on its core wheel and tire businesses serving agricultural, construction and consumer markets. The company also said it plans to use part of the proceeds to reduce debt and strengthen its balance sheet.
Titan said the deal should leave it with more financial flexibility to pursue acquisitions and partnerships. The company said it has already repurchased more than $100 million of its common stock over the last few years and said the sale proceeds could support additional growth investments.
The company also pointed to its current manufacturing footprint, saying it has operations in Illinois, Tennessee, Ohio, Brazil, the U.K., China and Italy, and said it has capacity to double wheel and tire production. 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. If you want to know more, read the company's complete 8-K report here.
