50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

Brembo buys suspension maker Ohlins Racing for $405 million

Published 10/11/2024, 03:29 AM
Updated 10/11/2024, 12:46 PM
© Reuters. FILE PHOTO: Logo of Brembo is pictured at the group's headquarters in Stezzano near Bergamo, Italy, March 14, 2024. REUTERS/Daniele Mascolo/File Photo
BRBI
-
TNC
-

MILAN (Reuters) - Italy's Brembo said on Friday it had agreed to buy suspension technology manufacturer Ohlins Racing for $405 million, in the premium brake maker's biggest ever acquisition.

Swedish-based Ohlins will be fully acquired from Apollo Global Management-backed Tenneco and will be paid through available cash, Brembo said in a statement.

Brembo Executive Chairman Matteo Tiraboschi said Ohlins was a "strong fit", helping it expand its 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," he said.

Brembo, which is controlled by Italy's Bombassei family, with a stake of around 70%, earlier this month raised over 280 million euros in cash through the sale of its entire 5.6% stake in tyre maker Pirelli, a move that also ended speculation about a merger between the two Italian groups.

The statement added that Ohlins Racing was committed to developing the next generation of mechatronic suspension technology for both road and track, reinforcing "Brembo's mission to be a solution provider for future mobility".

With a revenue expected to reach around $144 million at the end of the year, Ohlins Racing produces a wide range of products, including shock absorbers, front forks, steering dampers, software and algorithms. It is also a supplier of motoracing championships, including Formula 1 and MotoGP.

The group has 500 employees across two production facilities, in Sweden and Thailand, two R&D centres and four distribution and testing branches in the U.S., Germany, Thailand and Sweden, Brembo 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,” said Tom Wittenschlaeger, CEO of Ohlins Racing.

The acquisition is expected to close in early 2025.

© Reuters. FILE PHOTO: Logo of Brembo is pictured at the group's headquarters in Stezzano near Bergamo, Italy, March 14, 2024. REUTERS/Daniele Mascolo/File Photo

BofA Securities is acting as financial advisor to Brembo, while Jefferies is acting as lead financial advisor to

Tenneco.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.