Italtractor torna italiana: shopping della modenese Usco

Italtractor, a producer of components for subsoil machinery, has returned to being Italian-owned. The company, which manufactures components for subsoil machinery, has been acquired by Usco, a Modenese group, in a deal valued at $285 million. This significant shopping spree includes 11 manufacturing facilities (three of which are in Italy), 1,600 employees, and nearly $400 million in revenue.

Massimo Galassini, the founder of Usco, explained that the acquisition was important for both the company and the country, as it brings back a major Italian company to Italian control.

The future of Ducati has been placed in jeopardy due to Volkswagen-Audi's difficulties, while the ownership of Italtractor-Itm has now been secured by a growth-oriented group that leads globally in the component manufacturing sector for earth-moving machinery and mega-vehicles for agriculture, mining, construction, and deforestation.

Usco has now reached a revenue of $1.4 billion, the highest in its history, with over 4,000 employees. Galassini emphasized that the acquisition complements both geographically and product-wise, as Itm is present in key areas like India and Brazil where Usco has only a distribution presence. This proximity to key markets is becoming increasingly important.

The acquisition allows Usco to accelerate its growth by entering markets where it has no foothold, as building a site from scratch in these regions takes years. Another significant synergy lies in the sectors, as Itm is particularly strong in the mining industry, an area of interest for Usco, where Itm offers a broader range of products compared to Usco.

This is Usco's second external growth operation in a year, following the acquisition of the Australian mining company Schlam Payload in September of the previous year. The company acquired assets worth $160 million. Galassini explained that when he started Usco in 1989, he could never have imagined it would grow to $1.4 billion.

However, he is excited about the company's expansion, stating that they are now focused on developing further the global presence of Usco and reinforcing its competitive position. Meanwhile, Usco aims to provide Itm with additional resources and support for long-term growth, including customer service, product innovation, and geographic expansion.

Titan, quoted on Wall Street, stated that the sale will allow them to focus on their core business of wheels and tires in the agriculture, construction, and consumer markets, strengthening their financial position and providing flexibility to invest in strategic growth opportunities and acquisitions.