Brembo acquires Öhlins for $405 million
Brembo recently announced it 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, a manufacturer of premium, high-performance suspension technology 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,” says 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.”
This deal marks the largest acquisition in Brembo’s history with a $405 million USD purchase price on a cash-free, debt-free basis. The acquisition will be paid using available cash. The acquisition is expected to close in early 2025.
Founded 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 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.
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 2024 with revenues estimated to be $144 million, with an expected adjusted EBITDA margin between 21% and 22%.
“We’re confident that Brembo is the right partner to take Öhlins Racing to the next level,” says 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 executing 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,” says Tom Wittenschlaeger, CEO of Öhlins Racing.
This acquisition continues Brembo’s investment in the motorcycle and motorsports segments. In 2021, Brembo acquired SBS Friction in Denmark and J.Juan in Spain. In February, Brembo announced its entry into Thailand with a new production site dedicated to braking systems for motorcycle manufacturers. Brembo also controls Marchesini, the leading manufacturer of light alloy wheels for racing and on-road motorcycles.
Today, the motorcycle (two-wheeler) business represents approximately 13% of Brembo’s total revenues.
