Oppenheimer Reviewing Titan Estimates Following Goodyear Acquisition

Titan International, Inc. TWI announced the long-anticipated acquisition of Goodyear GT LatAm and European farm tire businesses, Oppenheimer reports. “The $130M cash price is on the low end of expectations, and may contain substantial pre-paid royalties, thus reducing the effective purchase price,” Oppenheimer writes. “Assuming 5% near-term margins, the forward EBITDA multiple is ~5.8x.” Oppenheimer said that its estimates are currently under review pending the 12/15 conference call at 2pm ET. “On the call we expect to gain insight into potential EBITDA margins and the timing of the closing,” Oppenheimer concludes. “We also look for details surrounding the USW labor contract negotiations.” Titan International closed Monday at $18.11; Goodyear closed at $11.44.