Brembo announces its acquisition of Öhlins

With Öhlins, Brembo expands its offerings for the automotive market to enhance its role as a Solution Provider of integrated, intelligent solutions to its customers.

Brembo has signed an agreement with Tenneco, a portfolio company of funds managed by affiliates of Apollo Global Management, Inc., for the acquisition of a 100% stake in Öhlins Racing, the manufacturer of premium, high performance suspension technology for motorcycles and cars in the Original Equipment, Motorsport, and Aftermarket segments.

This deal is said to mark the largest acquisition in Brembo’s history and further strengthens the Group’s brand portfolio.

Öhlins reportedly has a strong racing heritage and presence in major championships as a renowned supplier for MotoGP, Formula 1, Superbike, NASCAR, and others.

Matteo Tiraboschi, Brembo Executive Chairman said: “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.”

Founded in 1976, Öhlins Racing is based in Upplands Väsby (Stockholm), Sweden, and has an international footprint. The company apparently 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 claims its suspension technology is renowned for precision, performance, and innovation. With decades of expertise and advanced engineering, Öhlins Racing offers a 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 racing heritage and presence in motorsport championships, supplying MotoGP, Formula 1, World Superbike, NASCAR, and others. Öhlins Racing says it is projected to close 2024 with a turnover in the range of USD 144 million, with an expected adjusted EBITDA margin between 21% and 22%.

Jim Voss, CEO of Tenneco commented: “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.”

Tom Wittenschlaeger, CEO of Öhlins Racing said: “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.”

Öhlins Racing claims it is committed to developing the next generation of mechatronic suspension technology for both road and track. This innovation-driven approach will reportedly reinforce Brembo’s mission to be a Solution Provider for future mobility.

This deal marks the largest acquisition in Brembo’s history. The purchase price is USD 405 million, (corresponding to € 370 million at today’s exchange rate), on a cash free / debt free basis, subject to customary price adjustment mechanisms. The acquisition will be paid using available cash, is subject to customary regulatory approvals and is expected to close in early 2025, according to the company.

This acquisition continues Brembo’s investment in the motorcycle and motor racing area. In 2021 the Group acquired SBS Friction in Denmark and J.Juan in Spain, completing the offer of braking system solutions dedicated to two-wheelers. In February 2024, Brembo announced its entry into Thailand with a new production site dedicated to braking systems for motorcycle manufacturers. Brembo also controls Marchesini, a brand in the design and production of light alloy wheels for racing and road motorcycles.

It’s said 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 LLC is acting as lead financial advisor to Tenneco. Barclays is also acting as financial advisor and Sidley Austin LLP as legal advisor.