Italtractor returns to Italian ownership: acquisition by Modena-based Usco

“Italtractor-Itm,” adds Galassini, “offers significant complementarity in both geographical and production terms. For example, they have a manufacturing presence in key markets such as India and Brazil, where we are present only through our distribution network. And this proximity to end markets is becoming increasingly important. The acquisition allows us to accelerate our growth, because setting up a site in these areas from scratch is very complicated – it takes years. Another important synergy lies in the sectors we operate in, because ITM has a particularly strong presence in the mining sector, which is of great interest to us and where they have a much wider range of products than we do.”

For Usco, this is the second external growth transaction in a year, following the acquisition of the Australian mining group Schlam Payload last September, a company which has added a further €160 million in revenue to the group’s consolidated accounts.

“When I started out in 1989,” explains the entrepreneur, “even the thought of achieving a turnover of a hundred million seemed like an enormous feat to me; I didn’t even consider it. And, of course, I never in my wildest dreams believed I could reach 1.4 billion. I must say, however, that our path of external growth is not yet over and we have other deals on our radar, even if this one in Italia is the most significant.”

The significant leap in scale is already evident, however, for a group that is expanding its production sites from 16 to 25 in one fell swoop, almost doubling its workforce in the process.

“We are delighted to be able to start working with the ITM team,” explains Galassini, “to further develop our global presence and strengthen USCO’s competitive position. “For our part,” he continues, “we will be able to provide ITM with additional focus and resources to support long-term growth, customer service, product innovation and geographical expansion.”

Titan, a company listed on Wall Street, which in 2005 acquired Italtractor-Itm (initially through Titan Europe, of which it has been the sole shareholder since 2012), stated in a press release that the sale will enable it to focus on its core global activities in the wheel and tyre sector, serving the agricultural, construction and consumer markets, whilst strengthening its financial position and providing flexibility to invest in priority growth opportunities. The company intends to allocate part of the proceeds towards reducing its existing debt and strengthening its balance sheet, with future capital expected to be channelled towards acquisitions and strategic partnerships capable of expanding its capabilities and market positions.

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