How Titan International is creating American manufacturing jobs.
Headquartered in the heartland of the U.S., Titan International, a company with roots that date back to wagon wheel making in the 1890s, has grown to become the top global manufacturer of specialty tires and wheels, and employs 3,600 people.
With plants in six states including Illinois, Ohio, Iowa, and Virginia, as well as one plant in Brazil, Titan is a global supplier of complete wheel and tire assemblies for off-highway vehicles such as farming combines, timber luggers and massive earthmovers that are over five stories high and can haul 800,000 pounds. Titan produces a range of specialty products for original equipment manufacturers as well as customers in agriculture, earthmoving/construction and consumer markets. The biggest tire in its product line is 155 inches in diameter -- over 13 feet tall and nearly 10 times bigger than an average car tire.
Goldman Sachs has helped Titan pursue growth by providing the access to capital markets Titan needed to manage its balance sheet, grow its business, and expand its tire factories. This expansion has allowed Titan to save and create nearly 2,000 jobs, affecting people and their families and local communities.
Keeping it Rolling
For the past six years, Goldman Sachs has served as a sole book runner on a variety of transactions for Titan, as the company has focused on growing its business. We started working with Titan in 2006 as a book runner on a $200 million high yield debt offering to help strengthen the company’s balance sheet. In 2009, Titan and Goldman Sachs worked together on a convertible debt offering, this time in the midst of significantly challenging credit markets. Goldman Sachs helped find investors, and despite uncertain market conditions, Titan was able to more than double the size of the offering from $75 million to $172.5 million. This additional funding helped Titan to acquire and revive competitor operations.
In 2010, Titan called on Goldman Sachs again to help meet its funding needs as it continued to grow. Titan wanted to broaden its product lines in the construction and earthmoving business as it expanded in the off-the-road market, farming market and tire aftermarket. This required Titan to expand its tire factory in Bryan, Ohio.
Goldman Sachs acted as the sole book runner on the sale of $200 million senior secured notes to help finance the factory and improvements. The financing enabled Titan to hire additional staff, invest in new tire molds, and ramp up production of tires.
Innovation on the Factory Floor
Titan constantly faces changing industry dynamics from shifting customer needs, new designs and emerging technologies. Titan’s close collaboration with customers enables new products and differentiates the company. Titan is able to meet any needs its customers may have because it is the only company that designs, tests and manufactures its tires in house.
Most recently, a surge in demand for mining equipment has spurred some very significant innovations in tire technology. Titan’s engineers introduced designs for giant mining wheels and tires with a new steel radial construction technology to enhance performance and durability. Titan’s field technicians were able to provide its engineers with data directly from customers’ mining sites in order to create new wheels that last longer and can be replaced with minimal downtime in some of nature’s most challenging environments.
Goldman Sachs’ Industrial Investment Banking Group provides strategic advice and financial services to leading industrial companies around the world, including aerospace and defense, automotive, construction and transportation helping them with many types of transactions including mergers and acquisitions, divestitures, equity and debt financing and restructuring.