Brembo today signed an agreement with Tenneco, a company in the portfolio of funds managed by Apollo Global Management, for the acquisition of 100% of the capital of Öhlins Racing, a leader in the production of premium high-performance suspensions for motorcycles and cars in the first equipment, motorsport and aftermarket.
“Öhlins is perfect for Brembo. It is a brand recognized throughout the world, with a solid business and an unrivaled reputation, both on the track and on the road.” – declared Matteo Tiraboschi, Executive President of Brembo – “The entry of Öhlins into the Group is a great opportunity to expand our offer for the automotive market. With this acquisition, we take a further step forward in our strategy to provide intelligent and integrated to customers, exploiting the synergies between the main technologies for the vehicle corner”.
Founded in 1976, Öhlins Racing is based in Upplands Väsby (Stockholm), Sweden, and has a strong international presence. Öhlins employs approximately 500 people at two manufacturing facilities 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. Thanks to 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 the racing world, with a large presence in the main motorsport championships, supplying, among others, teams in MotoGP, Formula 1, World Superbike, NASCAR. Öhlins Racing is expected to end 2024 with revenue of approximately $144 million, with an expected adjusted EBITDA margin of 21% to 22%.
“We are confident that Brembo is the right partner to grow Öhlins” – declared Jim Voss, CEO of Tenneco – “This operation gives Öhlins and its people 2 / 3 the opportunity to achieve new goals and successes under the leadership of Brembo. Furthermore, it supports our strategy to simplify the Tenneco portfolio and strengthens our financial strength as we continue to work towards our long-term vision.”
“By joining forces with Brembo, we are excited to open up new growth opportunities. Thanks to our respective strengths, we will bring innovation and ever-increasing value to both customers and our people” – said Tom Wittenschlaeger, CEO of Öhlins.
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 operation is the largest acquisition in Brembo’s history. The consideration for the transaction is 405 million dollars (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 envisaged for similar transactions. The operation will be paid using available liquidity.
The acquisition is subject to the approval of the antitrust authorities, following which the transaction will be completed, expected at the beginning of 2025.
This acquisition adds to the recent and important 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 the offer of solutions for braking systems dedicated to two wheels. 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, manufacturing and marketing of light alloy wheels for racing motorcycles and road use.
The two-wheeler business is currently worth around 13% of Brembo’s total revenues.
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