Titan International Agrees to Sell ITM Business to USCO for Up to $285 Million

Titan International has signed a definitive agreement to sell its Italtractor ITM undercarriage business to USCO S.p.A. The September 21 announcement values the package at up to approximately $285 million in total cash value, but part of that amount depends on closing adjustments and an earnout.

The agreement provides for an initial purchase price of $207 million. Titan may receive another $6 million if ITM achieves specified 2026 performance criteria, while the company currently expects net asset and financial position adjustments to add about $23 million at closing.

Titan also counts $49 million of ITM dividends in the announced total. That figure comprises $38 million received in recent years and $11 million expected before closing, which means the headline value is broader than the cash purchase price payable when the transaction completes.

ITM designs and manufactures undercarriage systems and components for construction, mining, forestry, road building and agricultural machinery. Its international network serves original equipment and aftermarket customers, making the disposal relevant to several off highway equipment markets.

Titan said the sale would sharpen its focus on its global wheel and tire operations serving agriculture, construction and consumer markets. The company plans to use part of the proceeds to reduce debt and strengthen its balance sheet.

Management also said the transaction would increase its capacity to pursue growth investments, acquisitions and strategic partnerships. That makes the deal both a divestment and a portfolio decision, with capital moving away from undercarriages toward Titan’s remaining wheel and tire businesses.

For USCO, the acquisition would add a global undercarriage platform with manufacturing, service and distribution operations. Titan said ITM’s management team would remain with the business, while the buyer would provide additional focus and resources for growth, customer service and product development.

Closing is expected early in January 2027, subject to regulatory approvals and other customary conditions. Until then, ITM remains part of Titan and the final proceeds can vary with the agreed adjustments, the timing of dividends and whether the earnout conditions are met.