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Brembo today signed an agreement with Tenneco, a company in the portfolio of funds managed by Apollo Global Management, to acquire 100 percent of the capital of Öhlins Racing, a leading manufacturer of high-performance premium suspension for motorcycles and cars in the original equipment, motorsport and aftermarket segments.
“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,” said Matteo Tiraboschi, Brembo Executive Chairman. “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.”
Founded in 1976, Öhlins Racing is headquartered in Upplands Väsby (Stockholm), Sweden, and has a strong international presence. Öhlins employs about 500 people in two manufacturing plants in Sweden and Thailand, two research and development centers in Sweden and Thailand, and four sales and testing locations in the United States, Germany, Thailand, and Sweden.
Öhlins suspension technology is renowned for precision, performance and innovation. With decades of experience and advanced engineering, Öhlins Racing offers a wide range of products, including shocks, forks, software and algorithms, and accessories for the original equipment and aftermarket segments. The company also has a strong tradition in racing, with an extensive presence in major motorsport championships, supplying teams in MotoGP, Formula 1, World Superbike, and NASCAR, among others. Öhlins Racing is expected to close 2024 with revenues of about $144 million, with an adjusted EBITDA margin
expected to be between 21 percent and 22 percent.
“We’re confident that Brembo is the right partner to take Öhlins Racing to the next level,” said Jim Voss, CEO of Tenneco. “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.”
“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,” said Tom Wittenschlaeger, CEO of Öhlins Racing.
Öhlins Racing is committed to developing the next generation of mechatronic suspension technology for both road and track. This innovation-driven approach reinforces Brembo's mission to be a Solution Provider for the mobility of the future.
This transaction is the largest acquisition in Brembo's history. The consideration for the transaction is $405 million (which corresponds to approximately 370 million euros at today's exchange rate) in the absence of cash or financial debt, and is subject to the usual adjustment mechanisms provided for similar transactions. The transaction will be paid for using available cash.
The acquisition is subject to approval by antitrust authorities, following which the closing of the deal, expected in early 2025, will take place.
This acquisition adds to the recent major investments made by Brembo in the motorcycle and racing sectors. In 2021, the Group acquired SBS Friction in Denmark and J.Juan in Spain, completing its offering of brake system solutions dedicated to two-wheelers. In February this year, Brembo announced its entry into Thailand with a new production site dedicated to braking systems for motorcycle manufacturers. Brembo also controls Marchesini, the leading brand in the design, manufacture and marketing of light alloy wheels for racing motorcycles and road use.
The two-wheel business is now worth about 13 percent of Brembo's total revenues. BofA Securities is acting as financial advisor to Brembo. Simpson Thacher & Bartlett and BonelliErede act as legal advisors. Jefferies LLC acts as principal financial advisor to Tenneco. Barclays acts as financial advisor and Sidley Austin LLP acts as legal advisor.
