WEST CHICAGO, Ill.—Titan International Inc. has agreed to sell its Australia wheel business to OTR Tyres, an Australian tire, wheel and service provider.
The deal does not include Titan's undercarriage business in Australia, which Titan said it will continue to operate.
The terms of the deal, valued at approximately $17.5 million, includes OTR Tyres' assumption of all liabilities, including employee and lease obligations. The deal was expected to close March 31.
The divestiture will have only a "minimal" effect on Titan's tire sales.
The move ties into Titan's strategy of the past few years to exit the tire-servicing business and less-profitable products, Titan President and CEO Paul Reitz said, in the firm's drive to shore up its financial performance.
"In concert with our board of directors," Reitz said, "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."
Titan did not say how many employees are affected.
Perth, Australia-based OTR Tyres is a 70-year-old business serving the off-the-road tire and wheel sector throughout Australia through four sales and service depots.