WEST CHICAGO, Ill.,
March 29, 2022 /PRNewswire/ -- Titan
International, Inc. (NYSE: TWI) ("Titan" or "TWI") has entered into
a definitive agreement for the sale of its Australian wheel
business, to OTR Tyres, a local leading national tire, wheel and
service provider. The closing date is expected to be
Thursday, March 31, 2022.
The sale includes gross proceeds and cash to be repatriated of
approximately A$23 million, and 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, along with the release of certain restricted cash
related to lease guarantees. The proceeds related to the
transaction are expected to be primarily utilized to pay down debt
and pay advisory fees.
Paul Reitz, President and Chief
Executive Officer, commented, "In recent years, we took a number of
steps to turn around the financial performance in this business,
including exiting from the tire servicing business and less
profitable products. Our Australian management team has
consistently made decisions to put the business on a good
path. In concert with our Board of Directors, we believe the
business will be best suited in the hands of a local market leader,
which can continue to develop and grow the business going
forward. 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. We thank all of our dedicated
employees in this business for their contributions to Titan's
success and we wish them the very best in their future with OTR
Safe Harbor Statement: This press release contains
forward-looking statements. These forward-looking statements are
covered by the safe harbor for "forward-looking statements"
provided by the Private Securities Litigation Reform Act of 1995.
The words "believe," "expect" and other similar expressions are
intended to identify forward-looking statements. These
forward-looking statements are based on our current expectations
and beliefs concerning future developments and their potential
effect on us. Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, these
assumptions are subject to significant risks and uncertainties.
Additional risks and other factors that could cause actual
results or events to differ materially from those contemplated in
this release are detailed in the Company's reports on Forms 10-K
and 10-Q filed with the Securities and Exchange Commission. These
forward-looking statements are made only as of the date hereof. The
Company cautions that any forward-looking statements included in
this press release are subject to a number of risks and
uncertainties, and the Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, changed circumstances or future events,
or for any other reason, except as required by law.
About Titan: Titan International, Inc. (NYSE: TWI) is a
leading global manufacturer of off-highway wheels, tires,
assemblies, and undercarriage products. Headquartered in
West Chicago, Illinois, the
company globally produces a broad range of products to meet the
specifications of original equipment manufacturers (OEMs) and
aftermarket customers in the agricultural,
earthmoving/construction, and consumer markets. For more
information, visit www.titan-intl.com.
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SOURCE Titan International, Inc.