Titan International, Inc. Announces Sale of Brownsville, Texas Facility

Rhea-AI Summary

Titan International (NYSE: TWI) completed the sale of its Brownsville, Texas facility to an affiliate of Phoenix Investors. This one-million-square-foot facility, originally built for tire manufacturing, has not produced tires since 2003. The sale is part of Titan's strategy to divest non-core assets, contributing to an anticipated $16 - $20 million in total asset sales by Q4 2020. CEO Paul Reitz stated this move strengthens the company's balance sheet and positions it for growth as demand for their products increases into 2021.

Positive

• Sale of non-core asset expected to contribute $16 - $20 million in Q4 2020.
• Strengthens Titan's balance sheet.
• Positions company for future growth amid increasing product demand.

Negative

• None.

QUINCY, Ill., Dec. 2, 2020 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) today announced the completion of the sale of its Brownsville, Texas facility. The sale was completed in November to an affiliate of Phoenix Investors, a national private commercial real estate firm headquartered in Milwaukee, Wisconsin.

Originally built in 1997 for tire manufacturing, the plant totals approximately one million square feet on 108 acres. Titan ended production of tires in 2003 and most recently the facility has been leased to multiple tenants.

"We have highlighted the sale of non-core assets as an important initiative throughout 2020 and the sale of this facility was certainly a part of that process," stated Paul Reitz, President and Chief Executive Officer. "This sale, along with the completion of other smaller transactions, will put us within the $16 - $20 million range for non-core asset sales expected to be completed during the fourth quarter as highlighted during our most recent earnings release. This transaction further strengthens our balance sheet and helps position us for future growth as we continue to see higher demand levels for our products heading into 2021."

About Titan: Titan International, Inc. (NYSE: TWI) is a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products.  Headquartered in 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.

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SOURCE Titan International, Inc.

FAQ

What is Titan International's latest news regarding facility sales?

Titan International announced the completion of the sale of its Brownsville, Texas facility to Phoenix Investors.

How much did Titan International expect to raise from asset sales?

Titan International expects to raise between $16 and $20 million from non-core asset sales in Q4 2020.

What was the Brownsville facility used for?

The Brownsville facility was originally built for tire manufacturing but has not produced tires since 2003.

How does the sale of the Brownsville facility impact Titan International's future?

The sale strengthens Titan International's balance sheet and positions the company for growth in response to increasing product demand.