Tire & wheel maker Titan in €300m swoop for Carlstar

West Chicago, Illinois – Titan International Inc. has acquired Carlstar Group LLC for around $296 million, the Illinois maker of off-highway wheels, tires, assemblies, and undercarriage products announced 29 Feb.

The purchase price – $127 million cash and $169 million equity – is about four times Carlstar's 2023 adjusted earnings (EBITDA) of $73 million, said Titan.

West Chicago, Illinois-based Titan manufactures off-highway wheels, tires, assemblies, and undercarriage products for agricultural, earthmoving/construction, and consumer markets.

With 2023 sales of around $615 million, Nashville, Tennessee-based Carlstar makes tires and wheels for markets such as outdoor power equipment, power sports, trailers, and certain agricultural and construction equipment.

Carlstar includes three manufacturing plants in the US – Aiken, South Carolina; Jackson and Clinton, Tennessee – and one in Meizhou, China, as well as 12 distribution facilities in North America and Europe.

According to Titan, Carlstar brings significant new customer relationships in multiple channels, including leading wholesale distributors, national retailers, commercial servicing dealers, and OEMs.

Carlstar adds further diversification to Titan's product portfolio, especially in outdoor power equipment, power sports and high-speed trailers, where Titan does not have a presence.

Carlstar expands Titan's existing wheel/tire assembly capabilities, providing further value for existing and new customers.

The acquisition is expected “to be immediately accretive to earnings per share and operating margins in 2024,” noted Titan, which posted ‘income from operations’ of $101 million on net sales of $981 million for 2023.

 Prior to the deal, Carlstar was majority-owned by investment funds affiliated with American Industrial Partners Capital Fund V LP.

“This is a transformative deal for Titan as it expands our manufacturing and distribution footprint while also further diversifying our product portfolio and key customer relationships,” said its president and CEO Paul Reitz.