Titan International acquired global specialty tire and wheel manufacturer and distributor Carlstar Group for approximately $296 million.

The move diversifies Titan’s current portfolio of off-highway wheels, tires, assemblies and undercarriage products primarily for the agriculture market, as well as expands its manufacturing and distribution footprint.

Carlstar distributes and manufacturers tires and wheels for a variety of end-market verticals, primarily consumers, including in outdoor power equipment, power sports, and trailers, all of which Titan previously does not have a presence. Carlstar also offers small to midsize agricultural and construction equipment such as backhoes and skid-steer units

Carlstar company operates three manufacturing facilities in the U.S. (Aiken, SC; Jackson and Clinton, TN) and one in Meizhou, China, and manages 12 distribution facilities in the U.S. and Europe. Carlstar’s global 2023 revenues were approximately $615 million.

“While there is not a significant overlap in the legacy Titan business and Carlstar from a product and manufacturing capability standpoint, we expect to achieve sizeable commercial and operational synergies, as we combine these organizations,” said Titan CEO and President Paul Reitz in a Feb. 29 news release.

Retiz added in an earnings release: “Carlstar also brings us an expansive offering … within our consumer segment. Those markets are retail-centric, where demand and market activity are subject to much different drivers than agriculture.”

Titan Records 4Q Sales Volume Decrease Across Segmemts

Net sales for the fourth quarter of 2023 was $390.2 million, compared to $509.8 million in the same quarter of 2022. The drop was attributed to a sales volume decrease across all segments (agriculture, earthmoving and construction and consumer) caused by elevated inventory levels in the Americas, particularly for OEM customers, lower levels of end customer demand in small agricultural equipment and economic softness in Brazil, the company reported.

Net sales change was also impacted by negative price, primarily due to lower raw material and other input costs, most notably steel, and unfavorable foreign currency translation of -2%.