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BUSINESS COMBINATION | 3 Months Ended
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Mar. 31, 2025
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
BUSINESS COMBINATION | BUSINESS COMBINATION Acquisition of The Carlstar Group (now also known as Titan Specialty) On February 29, 2024, the Company acquired 100% of the equity interests of The Carlstar Group, LLC ("Carlstar") for the following purchase consideration and subject to a working capital adjustment based on an agreed upon working capital target (amounts in thousands):
| Purchase Consideration
Titan International, Inc. common stock | $ | 168,693 |
Base cash consideration, net of cash acquired of $10,288 | 127,500 |
| $ | 296,193 |
Additional cash consideration for excess net working capital acquired | 19,759 |
Other debt-like items | (3,616) |
Total purchase consideration, net of cash acquired | $ | 312,336 |
Carlstar is a global manufacturer and distributor of wheels and tires for a variety of end-market verticals including outdoor power equipment, power sports, trailers, and small to midsize agricultural and construction equipment. Carlstar has 17 manufacturing and distribution facilities located in four countries and provides solutions to customers in North America, Europe and China. Since the acquisition, the Company refers to much of Carlstar’s product line as “Titan Specialty” with all of Carlstar's operations now integrated as part of our One Titan platform. The following table summarizes the final allocation of purchase price consideration to the major classes of assets and liabilities as of February 29, 2024 (amounts in thousands):
| Final Purchase Price Allocation
Accounts receivable | $ | 92,043 |
Inventories | 150,900 |
Prepaid and other current assets | 13,339 |
Property, plant, and equipment | 115,090 |
Other long-term assets | 111,864 |
Goodwill | 29,563 |
Intangible assets | 11,500 |
Fair value of assets acquired | $ | 524,299 |
Accounts payable | $ | 66,055 |
Other current liabilities | 28,377 |
Operating leases | 108,249 |
Deferred tax liabilities | 7,773 |
Other long-term liabilities | 1,509 |
Fair value of liabilities assumed | $ | 211,963 |
Purchase price | $ | 312,336 |
Goodwill represents value the Company expects to be created by combining the operations of the acquired business with the Company's operations, including the expansion of customer relationships, access to new customers, and potential cost savings and synergies. Goodwill related to the acquisition is deductible for tax purposes. The carrying value of goodwill by reportable segment as of March 31, 2025 and December 31, 2024 was as follows:
| Carrying Value
Agricultural | $ | 4,844 |
Earthmoving/construction | — |
Consumer | 24,719 |
Total | $ | 29,563 |
Through March 31, 2024, the actual revenue and income before taxes of Titan Specialty since the acquisition date of February 29, 2024 included in the consolidated statement of operations is as shown below (amounts in thousands). The net income includes the effect of fair value adjustments for the amortization of inventory, intangible assets, and depreciation of property, plant and equipment.
| From Acquisition Date to March 31, 2024
Titan Specialty revenue | $ | 51,788 |
Titan Specialty income before taxes | 1,254 |
The following is the unaudited pro forma financial information for the three months ended March 31, 2024 that reflects our results of our operations as if the acquisition of Titan Specialty had been completed on January 1, 2023. This unaudited pro forma financial information is provided for informational purposes only and is not necessarily indicative of what the actual results of operations would have been had the transactions taken place on January 1, 2023, nor is it indicative of the future consolidated results of operations or financial position of the combined companies (amounts in thousands, except per share data).
|  |  | Three months ended
|  |  | March 31, 2024
Pro forma revenues |  |  |  |  | $ | 584,027 |
Pro forma net income |  |  |  |  | 25,445 |
Net income per common share, basic |  |  |  |  | $ | 0.35 |
Net income per common share, diluted |  |  |  |  | 0.35 |
These pro forma amounts have been calculated after applying Titan's accounting policies and making certain adjustments, which primarily relate to: (i) severance-related costs, (ii) adjustments relating to the fair value step-ups to inventory and (iii) transaction-related costs of both Titan and Titan Specialty. These pro forma amounts were adjusted to be excluded from the unaudited pro forma information for the three months ended March 31, 2024. Total acquisition-related costs for the three months ended March 31, 2024 was $6.2 million.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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