TITAN INTERNATIONAL INC. CLOSES ON STRATEGIC PARTNERSHIP WITH BRAZILIAN WHEEL MANUFACTURER RODAROS

Rhea-AI Summary

Titan International (NYSE: TWI) closed a strategic partnership with Brazilian wheel manufacturer Rodaros on October 28, 2025. Titan made an $4 million cash investment for a 20% ownership stake and will obtain one board seat (of three). The agreement includes commitments to acquire the remaining 80% in 2029 with final valuation tied to Rodaros' financial performance. Titan said the deal enables distribution of wheel/tire assemblies to OEMs across Brazil and South America and aims to integrate Rodaros into Titan’s One Stop Shop framework.

Positive

• $4 million initial investment for 20% stake
• Commitment to acquire remaining 80% in 2029 based on performance
• Acquires 1 of 3 board seats at Rodaros
• Expands distribution of wheel/tire assemblies into Brazil/South America

Negative

• Future purchase price dependent on financial performance criteria
• Full ownership deferred until 2029, creating valuation uncertainty

Insights

Strategic M&A specialist

Titan closed a capital-backed strategic partnership in Brazil: a $4 million purchase for 20% now with a contractual path to acquire the remaining 80% in 2029.

Titan International gains immediate minority ownership and a board seat (one of three) in Rodaros, a major Brazilian wheel manufacturer. The deal converts prior intent into binding economic exposure and governance influence while leaving final valuation of the full acquisition contingent on future financial performance.

The transaction’s business mechanism is simple: an initial cash investment secures strategic access to local manufacturing, distribution and OEM relationships in Brazil and South America. The deferred purchase of the remaining 80% ties Titan’s full commitment to measurable financial outcomes, aligning incentives but leaving timing and price uncertain until the 2029 earn‑out/valuation triggers are met. Monitor reported Rodaros performance metrics and the contractual valuation formula ahead of 2029.

Commercial integration and go‑to‑market analyst

The partnership adds local wheel manufacturing to Titan’s product mix and creates a route to offer integrated wheel/tire assemblies in Brazil.

Combining Rodaros’ local production with Titan’s regional tire distribution enables selling integrated assemblies to OEMs, a capability Titan highlights as differentiated in Brazil. Titan’s one Board seat and stated role providing financial leadership indicate active involvement in aligning operations and sales efforts.

Key dependencies include Rodaros’ near‑term financial performance and OEM uptake of wheel/tire assemblies; both drive whether the deferred acquisition proceeds. Watch quarterly disclosures for unit or revenue metrics tied to the 2029 valuation and any statements clarifying the financial performance criteria and timelines.

WEST CHICAGO, Ill., Oct. 28, 2025 /PRNewswire/ -- Titan International, Inc. (NYSE: TWI) ("Titan" or the "Company"), a leading global manufacturer of off-highway wheels, tires, assemblies, and undercarriage products, today announced the closing of a strategic partnership with Rodaros Industria de Rodas Ltda. ("Rodaros"), a Brazilian manufacturer of agricultural and construction wheels.  This deal was first announced during Titan's second quarter 2025 earnings call on July 31^st and has now completed formal regulatory review.

Rodaros is the second largest manufacturer of agricultural wheels in Brazil.  This partnership will be forged with an initial cash investment of $4 million by Titan for a 20% ownership stake and includes commitments to acquire the remaining 80% in 2029 based on financial performance criteria for final valuation of the enterprise.  Titan will obtain one Board seat within Rodaros (out of a three-member Board) and will begin providing financial leadership.

Paul Reitz, President and Chief Executive Officer of Titan stated, "This partnership reinforces Titan's commitment to offering the best solutions for our customers' equipment and to driving performance improvements in agriculture and construction operations. By combining Rodaros' excellence in wheel manufacturing with Titan's market leading tire production and distribution across the entire region, we are paving the way for the development of integrated solutions tailored to the Brazilian and South American markets."

Mr. Reitz continued "Building on Titan's One Stop Shop framework, this strategic partnership now gives us the opportunity to distribute wheel/tire assemblies to existing OEM customers, particularly in Brazil, the third largest agricultural market in the world.  Over the years, I've talked to key OEMs in Brazil, and they expressed enthusiasm about the opportunity to procure wheel/tire assemblies, which is something that none of our key competitors offer in that region. I expect this partnership to be a game changer for our customers and anticipate that wheel/tire assemblies will be a successful part of our Brazilian portfolio, much like they are in the US. Additionally, it gets us one step closer to our goal of being a supplier that OEMs can rely on for both wheels and tires, for all key geographies across the globe. We are excited about the growth opportunities that this partnership will provide for Titan, and about the ability to better serve our customers."   

Ronaldo Linero, CEO of Rodaros added, "This partnership is founded on shared values and complementary technical expertise between the companies. Our goal is to generate real synergies and deliver added value to the end customer".

About Titan

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/titan-international-inc-closes-on-strategic-partnership-with-brazilian-wheel-manufacturer-rodaros-302597090.html

SOURCE Titan International, Inc.

FAQ

What did Titan (TWI) pay to acquire its initial stake in Rodaros on October 28, 2025?

Titan invested $4 million to acquire a 20% ownership stake in Rodaros.

When will Titan complete the acquisition of the remaining 80% of Rodaros?

Titan committed to acquire the remaining 80% in 2029, with final valuation tied to Rodaros' financial performance criteria.

How much board representation does Titan (TWI) receive at Rodaros after the deal?

Titan will hold one board seat out of a three-member board at Rodaros.

How does the Rodaros partnership affect Titan's presence in Brazil and South America?

The partnership enables Titan to distribute integrated wheel/tire assemblies to OEMs across Brazil and South America.

Is the Rodaros deal subject to regulatory review or approvals?

The announcement states the partnership completed formal regulatory review prior to closing on October 28, 2025.