Stout has advised Titan International, Inc. (NYSE: TWI) (“Titan”) on the divestiture of its subsidiary, Titan Australia Pty Ltd. (“Titan Australia”), to Western-Australia-based OTR Tyres (“OTR”). Stout served as the exclusive sell-side financial advisor to Titan in connection with the transaction.

Headquartered in Perth, Western Australia, Titan Australia is a leading manufacturer, distributor, and service provider of off-the-road wheels and tires. With eight locations spanning coast-to-coast and around 135 employees, Titan Australia offers a full suite of wheels, tires, axles and components, and related value-added services and solutions to a diverse array of OEMs and aftermarket customers across mining, agriculture, construction, and consumer end markets.

“In recent years, we took a number of steps to turn around the financial performance in this business, including exiting from the tire servicing business and less profitable products. Our Australian management team has consistently made decisions to put the business on a good path. In concert with our Board of Directors, we believe the business will be best suited in the hands of a local market leader, which can continue to develop and grow the business going forward,” Paul Reitz, President and CEO of Titan commented. “We thank all of our dedicated employees in this business for their contributions to Titan Australia’s success and we wish them the very best in their future with OTR Tyres.”

“This transaction represents a successful outcome for Titan in placing its Australian business and team with a growth-oriented, experienced market leader in OTR Tyres while opening bandwidth to focus on the abundant opportunities ahead of Titan in the North American market,” said Stout Managing Director Steven Rathbone, who originated and led the transaction. “Titan Australia’s platform offers a strong, national base of manufacturing, service, and support infrastructure across Australia, largely expanding the geographic footprint of OTR. Along with dedicated employees from both companies and OTR Tyres’ respected brand name, the combined company is poised for tremendous success.”

Stout’s Mark Abbott, Steven Simone, Jack Dunsire, and Phillip Kane assisted in executing the transaction.

Corrs Chambers Westgarth served as legal counsel to Titan Australia. Squire Patton Boggs served as legal counsel to OTR Tyres.

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