Titan's Taylor discloses acquisition in the works

ERJ staff report (LMH)

Quincy, Illinois -- Titan International Inc's next acquisition will be a company in the tire industry with roughly $300 million in annual sales, Titan CEO Maurice Taylor Jr. told analysts in a conference call.

Taylor said he expects Titan will to close the deal before the end of the year or in early in 2013. While declining to identify the targeted company, he said it would "expand our footprint much bigger."

He also said Titan is evaluating at least two other acquisitions that would contribute significantly toward the firm's goal of reaching $4 billion in annual sales by 2015.

Earlier this week Titan published a forecast in which Taylor said Titan's sales should increase next year by more than 25 percent to $2.4 billion to $2.5 billion on the strength of the farm markets in the Americas, the global mining business and continued growth from recent acquisitions.

In the 6 Dec conference call, Taylor ruled out Goodyear's European farm tire business as the near-term purchase. Titan has negotiated off and on with Goodyear for more than two years about that business.

Looking past 2013, Taylor said the "biggest chunk of growth" on the road to $4 billion would be from the three acquisitions the firm now is evaluating, with internal growth contributing about $500 million.

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