Titan sells Australian wheel business – Muddy River News
Titan International, Inc. has entered into a definitive agreement to sell its Australian wheel business to OTR Tyres, a national tire, wheel and service provider. The closing date is scheduled for March 31.
The sale includes gross proceeds and cash to be repatriated of approximately $23 million, as well as the assumption of all liabilities, including employee and lease obligations. The purchase price is subject to customary post-closing review and potential adjustments related to target working capital, as well as the release of certain restricted cash related to lease guarantees. Proceeds from the transaction are expected to be used primarily to repay debt and pay advisory fees.
“In recent years, we have taken a number of steps to turn around the financial performance of this business, including exiting the tire service business and less profitable products,” said Paul Reitz, president and chief executive officer. from the direction of Titan. “Our Australian management team has always made decisions to put the business on the right path. Together with our Board of Directors, we believe the business will be best placed in the hands of a local market leader, who can continue to develop and grow the business in the future. We will continue to operate our undercarriage business in Australia, and the sale of this business will have minimal impact on sales of tires manufactured by Titan.”
Titan International employs approximately 7,500 employees worldwide, including approximately 1,200 at Titan Wheel in Quincy.