QUINCY, Ill.—Titan International Inc. has received a non-binding letter of interest that includes a nine-figure purchase price for its Italtractor ITM S.p.A. subsidiary, which designs and produces steel track and undercarriages for the construction, mining and agricultural markets.
The proposal is subject to and is predicated upon all necessary due diligence, Quincy-based Titan said, noting it has given the potential purchaser information concerning ITM. Titan previously had expressed its receptiveness to entertaining offers for the sale of ITM at this price level, which the company did not specify.
Titan said it has formed a special committee, comprising independent members of its board of directors, to review and analyze the issues relating to a possible sale of ITM, and engage in discussions with third parties, including with respect to the proposal. The company added that, to the extent appropriate, it was authorizing the committee to negotiate or supervise the negotiation of final terms of any transaction and any agreements necessary to solidify the deal.
Gary Cowger is chairman of the committee, which includes board members Albert Febbo, Peter McNitt and Anthony Soave.
According to Titan, the committee intends to engage a financial adviser to assist it in carrying out its responsibilities.
The company said it can't predict whether or when any sale or other transaction involving ITM would or would not occur.
ITM, which has its headquarters near Bologna, Italy, has three production plants in that country, according to its website.
The company's Ceprano plant specializes in forging links and half rollers, which it supplies to production facilities in Fanano and Potenza, Italy. Its Fanano factory produces rollers for the entire ITM range. At that facility roller shells are machined and undergo heat treatments, the shafts and brackets are manufactured, and the complete rollers are assembled and painted.
ITM said its Potenza factory produces a complete range of dry and greased track chains—with and without shoes—for an extensive series of crawler machines and special applications.