Brembo announces acquisition of Öhlins Suspension
Leading Sweden based powersports industry suspension specialist Öhlins has been acquired by Brembo in a first major strategic buy into an 'adjacent' business sector for the Bergamo, Italy based global brakes products manufacturer and brand owner.
The deal is primarily being touted by Brembo as an automotive market play, with the October 11announcement saying that with this acquisition "Brembo expands its offerings for the automotive market."
Brembo stated that "this deal marks the largest acquisition in Brembo's history and further strengthens the Group's brand portfolio. Öhlins has a strong racing heritage and presence in major championships as a renowned supplier for MotoGP, Formula 1, Superbike, NASCAR, and others."
The deal (for a 100% stake in Öhlins Racing) was with US conglomerate Tenneco, which only acquired Öhlins in late 2018 from founder Kenth Öhlins some months after Tenneco's $5.4bn acquisition of Ferodo brake pads owner Federal Mogul earlier that year. Tenneco folded Öhlins into 'Driv' - a then newly formed division with Ferodo and other brands.
In turn Tenneco (described as a "portfolio company of funds") is managed by "affiliates" of New York based 'alternate' asset manager Apollo Global Management, Inc. Tenneco is also the owner of Monroe Shocks and former owner of Italian suspension manufacturer Marzocchi.
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 by Kenth Öhlin in in Upplands Väsby (Stockholm) in 1976, Öhlins Racing has a strong international footprint. It employs approximately 500 people across two production facilities and R&D centers located in Sweden and Thailand and four distribution and testing branches in the U.S., Germany, Thailand and Sweden.
In 1986 Kenth sold a majority stake in Öhlins to Yamaha, taking back 95% ownership from them in 2007.
Öhlins Racing is projected to close 2024 with a turnover in the range of $144m, with an expected adjusted EBITDA margin between 21% and 22%. Brembo's purchase price put at $405m on a cash free/debt free basis. The deal is subject to the customary regulatory approvals and is expected to close in early 2025.
The sale comes at a time when Tenneco is seeking to "streamline our business portfolio and strengthen our balance sheet" as it continues to "execute on our long-term vision."
Öhlins Racing CEO Tom Wittenschlaeger is quoted as saying: "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 is committed to developing the next generation of mechatronic suspension technology for both road and track. This innovation-driven approach will reinforce Brembo's mission to be a Solution Provider for future mobility."
The 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. In February of this year, Brembo announced its entry into Thailand and also controls lightweight alloy wheel specialist Marchesini.
Founded in 1961 in Italy, Brembo cites over 600 motorsport championship title wins in its history, presently employing 16,000 people across 15 countries, 32 production and business sites and 9 R&D centers.
The company's turnover was € 3,849 million in 2023. The two-wheeler business is said to be worth approximately 13% of total Brembo revenues.