Titan International Inc. has acquired Carlstar Group LLC for $296 million in cash and stock.
Carlstar is a global manufacturer and distributor of specialty tires and wheels “for a variety of end market verticals, including outdoor power equipment, power sports, trailers and small to mid-size agricultural and construction equipment,” according to Titan officials, who add that Carlstar “brings significant new customer relationships in multiple channels, including leading wholesale distributors, national retailers, commercial servicing dealers and OEMs” and “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.”
The deal includes four Carlstar plants, which are located in Aiken, S.C.; Clinton and Jackson, Tenn., and Meizhou, China, along with 12 distribution centers across North America and Europe.
Carlstar posted $615 million in global revenue in 2023.
"I am delighted to announce our acquisition of Carlstar, which closed this morning,” says Paul Reitz, president and CEO of Titan. “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, making Titan a ‘one-stop shop’ within the specialty wheel and tire space.
“Carlstar's exciting catalogue of products are utilized primarily by consumers, which is a much different market than ag. In outdoor power equipment and power sports, Carlstar wheels and tires can be found on products such as ATV/UTVs, lawn mowers and golf carts. Their tires can also be found on high-speed trailers, where performance is a key differentiator. In the ag market, Carlstar products are typically found on equipment such as backhoes and small skid-steer units, giving Titan a best-in-class offering.”
“In order to fund the cash portion of the transaction, Titan entered into a new domestic credit facility, effective February 29, 2024,” say Titan officials.
