Titan International, Inc., a global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, has completed the acquisition of Carlstar Group LLC for approximately $296 million in a cash and stock transaction. The deal closed on February 29 following approval and completion of necessary wire transfers and stock issuance.
Carlstar, a leading manufacturer and distributor of specialty tires and wheels, operates across various end-market verticals, including outdoor power equipment, power sports, trailers, and small to midsize agricultural and construction equipment. With three manufacturing facilities in the US and one in China, as well as twelve distribution centers globally, Carlstar reported revenues of approximately $615 million in 2023.
Titan’s acquisition of Carlstar is expected to enhance its customer relationships across multiple channels and diversify its product portfolio, particularly in segments where Titan previously lacked a presence. The combined entity is poised to become a major player in the specialty tire manufacturing space, offering both commercial and consumer solutions, Titan said.
The transaction was financed through a combination of cash and stock, with Titan securing a new domestic credit facility to fund the cash portion. The acquisition multiple represents approximately four times Carlstar’s FY 2023 adjusted EBITDA, with anticipated synergies driving the multiple even lower.
