Titan International, a manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, acquired Carlstar Group, a 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 midsize agricultural and construction equipment, for approximately $296 million. The transaction closed today, subject to the completion of the wire transfers under the purchase agreement and issuance of the stock considerations.
In order to fund the cash portion of the transaction, Titan entered into a new domestic credit facility with Bank of America as agent. The new facility was increased to $225 million from Titan’s previously facility of $125 million. The new facility has a five-year term with terms similar to those contained in Titan’s previous credit facility, as well as other enhancements to further improve availability within the borrowing base.
