Tenneco announced a strategic investment from Apollo Fund X into the company’s Clean Air and Powertrain businesses – which is essential for unlocking growth opportunities and strengthening the company’s long-term position as a leading global automotive supplier. And American Industrial Partners will invest along with Apollo Fund X.
Tenneco will continue operating as one company with no changes to the management team and structure, operational cadence, or strategic priorities. And this access to capital will enhance Tenneco’s ability to execute streamlined growth strategies and provide the flexibility to invest in a pipeline of emerging opportunities. The deal will drive organic and inorganic growth, positioning the business for top-tier operational performance and enhanced execution.
Since the acquisition by funds managed by affiliates of Apollo in November 2022, Tenneco has undergone a significant transformation, putting in place a world-class management team, optimizing operations, and investing in advanced manufacturing capabilities. These efforts resulted in best-in-class business performance, including top-quartile EBITDA margins, and have laid the groundwork for the next phase of growth supported by this investment.
Citigroup and Deutsche Bank Securities are serving as financial advisors to Tenneco. Barclays Capital Inc, Lazard and PJT Partners LP are serving as financial advisors to Apollo Funds.
The deal is expected to be completed in the second quarter of 2025.
KEY QUOTES:
“Over the past two years, we have built an incredible company with a culture rooted in safety, financial performance, and operational excellence. With Apollo’s continued support and belief in Tenneco’s long-term potential, this investment enables us to execute more strategically as we deliver on our purpose of being the best partner and world’s best manufacturer and distributor in the transportation industry.”
– Jim Voss, CEO of Tenneco
“This investment marks a critical step in Tenneco’s transformation. Since acquiring Tenneco, we have seen tremendous progress, with the team delivering exceptional operational and financial results. This move reflects the strong partnership between Apollo and Tenneco’s leadership and reinforces our shared commitment to long-term success in a sector we believe in.”
– Michael Reiss and Shahid Bosan, Deal Team Leads at Apollo
