Brembo has signed an agreement with Tenneco, a portfolio company of funds managed by affiliates of Apollo Global Management, for the acquisition of a 100% stake in Öhlins Racing, the leading manufacturer of premium, high-performance suspension technology for motorcycles and cars in the Original Equipment, Motorsport, and Aftermarket segments.
Launched in 1976, Öhlins Racing is based in Upplands Väsby (Stockholm), Sweden, and has a strong international footprint. Öhlins employs approximately 500 people across two production facilities located in Sweden and Thailand, two R&D centers in Sweden and Thailand, and four distribution and testing branches in the U.S., Germany, Thailand, and Sweden.
Öhlins’ suspension technology is renowned for precision, performance, and innovation. With decades of expertise and advanced engineering, Öhlins Racing offers an extensive
range of products, including shock absorbers, front forks, steering dampers, software and algorithms, and accessories for the OEM and aftermarket segments. The company also has a strong racing heritage and presence in major motorsport championships, supplying MotoGP, Formula 1, World Superbike, NASCAR, and others. Öhlins Racing is projected to close in 2024 with a turnover of $144 million, with an expected adjusted EBITDA margin between 21% and 22%.
Öhlins Racing is committed to developing the next generation of mechatronic suspension technology for both road and track. And this approach will reinforce Brembo’s mission to be a Solution Provider for future mobility. And this deal marks the largest acquisition in Brembo’s history. The purchase price is $405 million, (corresponding to $370 million at the exchange rate at the time), on a cash free / debt free basis, subject to customary price adjustment mechanisms. The acquisition will be paid using available cash.
The deal is subject to customary regulatory approvals and is expected to close in early 2025. It continues Brembo’s investment in motorcycle and motor racing.
In 2021,the Group acquired SBS Friction in Denmark and J.Juan in Spain, completing the offer of braking system solutions for two-wheelers. In February, Brembo entered Thailand with a new production site dedicated to braking systems for motorcycle manufacturers. Brembo also controls Marchesini, the leading brand in designing and producing light alloy wheels for racing and road motorcycles. The two-wheeler business is today worth approximately 13% of Brembo’s total revenues.
BofA Securities is acting as financial advisor to Brembo. Simpson Thacher & Bartlett and BonelliErede are acting as legal advisors. Jefferies is acting as lead financial advisor to
Tenneco. Barclays also serves as financial advisor and Sidley Austin LLP as legal advisor.
KEY QUOTES:
“Öhlins is a strong fit for Brembo. It is a world-renowned brand, with a solid business and an unrivaled reputation, both on the racetrack and the road. We welcome Öhlins to our Group as a great opportunity to expand our offerings for the automotive market. With this addition, we take another step forward in our strategy to provide integrated intelligent solutions to our customers, leveraging synergies across key technologies in the vehicle’s corner.”
-Matteo Tiraboschi, Brembo Executive Chairman
“We’re confident that Brembo is the right partner to take Öhlins Racing to the next level. This sale not only positions Öhlins and its employees for continued success under Brembo’s leadership in the market, but it also supports Tenneco’s strategy of streamlining our business portfolio and strengthening our balance sheet as we continue to execute on our long-term vision.”
-Jim Voss, CEO of Tenneco
“As we join forces with Brembo, we are excited to unlock new growth opportunities and leverage our respective strengths and assets to drive innovation and deliver even greater value to our customers and employees.”
-Tom Wittenschlaeger, CEO of Öhlins Racing
