CHICAGO, Oct. 21,
2024 /PRNewswire/ -- Titan International, Inc.
announced it completed the repurchase of 8.0 million shares of
common stock from MHR Fund Management for $57.6 million ($7.20 per share) in cash. MHR Fund
Management is led by Mark Rachesky,
who has been a member of Titan International Inc's Board of
Directors since 2014.
Paul Reitz, Titan's President and
Chief Executive Officer, stated, "Titan's Board of Directors was
presented with an opportunity for our shareholders to repurchase
8.0 million shares (11% of outstanding shares) at $7.20 per share from MHR Fund Management. Titan's
balance sheet is in a healthy position prior to this transaction
with approximately $225 million in
cash and a current net debt to EBITDA ratio of 1.9 times using
trailing twelve months financial results. Our Board of Directors
and management team believe that the long-term prospects for Titan
are strong, making this a sound investment of capital."
The transaction was approved by Titan's Board of Directors, with
no impact on the preexisting share repurchase authorization, and
funded using a combination of availability on the Company's
revolving credit facility and available cash.
Titan Chairman Maurice Taylor,
Jr. added "In my 50 plus years in the business, I never have
seen a better future for Titan. Paul
Reitz and his team are setting Titan up to grow. No other
company in the world has the range and manufacturing capacity of
wheels and tires that Titan does. The test of super-sized Titan LSW
single wheels and tires has proven that crop yields increased
around 5% and fuel savings up to 1/3 gallon per acre versus dual
standard tire setups. Farmers are ordering new equipment with these
new LSW super-singles or changing out current equipment. It's
taken a long time to get the attention of end-users but, now it's
there. It's really great to see Titan as the leader of wheels and
tires in the world of farming and I believe the future will be good
for the Company."
Taylor concluded "The US Army has used super-singles on trucks
for over 15 years, and Titan will soon be building wheels and tires
in the LSW design for them to test. The Army is looking at
newly-designed trucks, with production levels of 100,000 over ten
years. That is a significant amount of wheels and tires, and I'm
excited about the opportunity that presents for Titan!"
About Titan: Titan International, Inc. (NYSE: TWI) is a
leading global manufacturer of off-highway wheels, tires,
assemblies, and undercarriage products. Headquartered in
West Chicago, Illinois, the
company globally produces a broad range of products to meet the
specifications of original equipment manufacturers (OEMs) and
aftermarket customers in the agricultural,
earthmoving/construction, and consumer markets. For more
information, visit www.titan-intl.com.
Safe Harbor Statement
This press release contains forward-looking statements. These
forward-looking statements are covered by the safe harbor for
"forward-looking statements" provided by the Private Securities
Litigation Reform Act of 1995. The words "believe," "expect,"
"anticipate," "plan," "would," "could," "potential," "may," "will,"
and other similar expressions are intended to identify
forward-looking statements, which are generally not historical in
nature. These forward-looking statements are based on our current
expectations and beliefs concerning future developments and their
potential effect on us. Although we believe the assumptions upon
which these forward-looking statements are based are reasonable,
these assumptions are subject to significant risks and
uncertainties, and are subject to change based on various factors,
some of which are beyond Titan International, Inc.'s control. As a
result, any of these assumptions could prove to be inaccurate and
the forward-looking statements based on these assumptions could be
incorrect. The matters discussed in these forward-looking
statements are subject to risks, uncertainties, and other factors
that could cause actual results and trends to differ materially
from those made, projected, or implied in or by the forward-looking
statements depending on a variety of uncertainties or other factors
including, but not limited to, the effect of the COVID-19 pandemic
on our operations and financial performance; the effect of a
recession on the Company and its customers and suppliers; changes
in the Company's end-user markets into which the Company sells its
products as a result of domestic and world economic or regulatory
influences or otherwise; changes in the marketplace, including new
products and pricing changes by the Company's competitors; the
Company's ability to maintain satisfactory labor relations;
unfavorable outcomes of legal proceedings; the Company's ability to
comply with current or future regulations applicable to the
Company's business and the industry in which it competes or any
actions taken or orders issued by regulatory authorities;
availability and price of raw materials; levels of operating
efficiencies; the effects of the Company's indebtedness and its
compliance with the terms thereof; changes in the interest rate
environment and their effects on the Company's outstanding
indebtedness; unfavorable product liability and warranty claims;
actions of domestic and foreign governments, including the
imposition of additional tariffs; geopolitical and economic
uncertainties relating to the countries in which the Company
operates or does business; risks associated with acquisitions,
including difficulty in integrating operations and personnel,
disruption of ongoing business, and increased expenses; results of
investments; the effects of potential processes to explore various
strategic transactions, including potential dispositions;
fluctuations in currency translations; risks associated with
environmental laws and regulations; risks relating to our
manufacturing facilities, including that any of our material
facilities may become inoperable; risks relating to financial
reporting, internal controls, tax accounting, and information
systems; and the other risks and factors detailed in the Company's
periodic reports filed with the Securities and Exchange Commission,
including the disclosures under "Risk Factors" in those reports.
These forward-looking statements are made only as of the date
hereof. The Company cautions that any forward-looking statements
included in this press release are subject to a number of risks and
uncertainties, and the Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, changed circumstances or future events,
or for any other reason, except as required by law.
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SOURCE Titan International, Inc.
