Titan International agrees to sell Italtractor ITM business for up to $285M

• Titan International (NYSE:TWI) agreed to sell its Italtractor ITM undercarriage business to USCO S.p.A.
• The transaction includes an initial purchase price of $207 million and a potential $6 million earnout.
• Titan plans to use proceeds to reduce debt and focus on its core wheel and tire operations.

Titan International (NYSE:TWI) announced a definitive agreement to sell its Italtractor ITM undercarriage business to USCO S.p.A. for cash consideration linked to closing adjustments and future performance.

Under the agreement, Titan will receive an initial purchase price of $207 million, along with a potential earnout of up to $6 million based on ITM’s 2026 performance.

The transaction is also expected to include approximately $23 million in closing adjustments related to ITM’s net assets and financial position.

Titan said it has received or expects to receive approximately $49 million in ITM dividends, including $38 million already received and an additional $11 million expected before closing.

Including the potential earnout, Titan expects the transaction to generate up to approximately $285 million in total cash value.

The company said proceeds from the transaction will support its strategy of focusing on its core global wheel and tire businesses, reducing debt and pursuing future growth investments and acquisitions.

Closing is targeted for early January 2027, subject to customary closing conditions and required regulatory approvals.