1 month, 3 weeks ago by Scott Hardy
Deal closed Thursday; 4th Quarter, 2023 net sales down
A multi-national tire and wheel manufacturer founded in Quincy has announced it's acquired another wheel company in a nearly $300 million deal.
Titan International announced Thursday that it's acquired Carlstar Group LLC for about $296 million. The deal consists of both cash and stock and closed Thursday. Carlstar is a global manufacturer and distributor of specialty tires and wheels for a variety of specialty vehicles. They include outdoor power equipment, power sports, trailers, and small to midsize ag and construction equipment. Carlstar has three manufacturing facilities in the US and one in China, along with twelve distribution facilities around the world. Carlstar's global 2023 revenues were about $615 million.
Titan said in a statement announcing the deal that buying Carlstar will expand their tire and wheel business, bring new customers in multiple channels, and will also diversify Titan's product portfolio. Titan President and Chief Executive Officer Paul Reitz calls the deal transformative, saying "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".
Titan announced its' 4th Quarter financial results Thursday, saying its' sales and profits were down. Titan says that net sales for the fourth quarter were $390 million, compared to nearly $510 million in the 4th quarter of 2022. Titan blames that decrease on decreased sales volume, caused by higher inventory levels in both North and South American equipment manufacturers. Titan's net sales for 2023 were $1.8 billion, down from 2022's $2.1 billion. Titan's gross profit for the fourth quarter was $58 million, compared to $76.7 million in the 4th quarter of 2022. The company's gross profit for 2023 was nearly $306 million, down from 2022's 360 million. Reitz says that so far this year, demand is soft due to lower farm incomes, but he also says that in the long run, the continued adoption of precision farming will drive demand for Titan's products.
Titan International was founded in Quincy as Titan Wheel, and has a manufacturing plant here.
