Titan International Inc. raised about $60 million in gross revenue from the launch of shares in Titan Europe P.L.C. on London's AIM stock exchange.
Titan International, a producer of wheels and tires for the earthmoving, farm, military and other commercial businesses, will retain about 30 percent of the shares of Titan Europe. Titan said it will use the proceeds to pay down debt and solidify the company's financial position.
The shares started trading at about $2.25, with 26.8 million shares offered.
The transaction will provide Titan International and Titan Europe with "the financial structure to facilitate future acquisition projects and maximize value for our stockholders, customers and employees," said Maurice Taylor Jr., president and CEO of Titan International. "Our two companies will continue to function like two hands, independent but working together in coordinated efforts."
Mike Akers, a Titan executive since 1989, was named president and CEO of Titan Europe. During his tenure with Titan, Akers oversaw a number of acquisitions in the wheel business in Europe, where Titan has six manufacturing and warehousing/distribution facilities in the United Kingdom, Italy, France and Germany.