West Chicago, Illinois – September 21, 2026 -- Titan International (NYSE: TWI) has agreed to sell its Italtractor ITM undercarriage business to Italy's USCO S.p.A. in a deal set to deliver up to $285 million in total cash value to the wheel and tire manufacturer.
Deal structure delivers up to $285 million across multiple payment streams
Titan will receive an initial purchase price of $207 million, plus up to $6 million in earnout proceeds tied to ITM's 2026 performance targets. Customary net-asset adjustments at closing are expected to add roughly $23 million in additional value. Titan has also received or expects to receive $49 million in dividends from ITM, including $38 million collected in recent years and $11 million anticipated before closing.
Sale sharpens Titan's focus on core wheel and tire operations
The divestiture allows Titan to concentrate capital and management attention on its global wheel and tire business serving agricultural, construction and consumer equipment markets. CEO Paul Reitz said the transaction gives Titan "the financial capacity to pursue accretive growth opportunities and reduce debt" while reshaping its portfolio through future acquisitions and partnerships.
Titan plans to redirect proceeds toward debt reduction and acquisitions
Titan intends to use a portion of the proceeds to pay down existing debt and strengthen its balance sheet. The company has flagged future capital deployment toward accretive acquisitions and strategic partnerships intended to expand its manufacturing capabilities and market position.
ITM gains new ownership focused on undercarriage growth
ITM designs, manufactures and distributes undercarriage systems and components for construction, mining, forestry, road-building and agricultural equipment, including its TRUST ITM® sensor-based monitoring technology. Under USCO, the business is expected to gain additional resources for product innovation, customer service and geographic expansion.
Transaction targets early-January 2027 close pending regulatory approval
The deal is expected to close in early January 2027, subject to customary closing conditions including regulatory approvals. Titan and ITM will continue normal operations until completion. Gianni & Origoni and Poggi & Associati advised Titan and ITM on legal and tax matters, while USCO was assisted by Eidos Partners as financial advisor, Simmons+Simmons on legal matters, and BDO and KPMG on due diligence.
Titan's board chairman Maurice Taylor Jr. noted that a sale of ITM was first discussed with the board more than a decade ago, when an initial offer came in below $100 million. The company's most recent prior acquisition was the Carlstar Group wheels and tires business, and Titan has repurchased more than $100 million of its common stock in recent years using operating cash flow.