Brembo Acquires Öhlins Racing for $405 Million
Brembo, the Italian company synonymous with race-ready brake systems, announced that it is buying Öhlins, the Swedish outfit best known for its automotive shocks and motorcycle forks. The current owner of Öhlins is Tenneco, an OEM supplier of automotive parts from several familiar brands including Champion (spark plugs), Fel-Pro (gaskets), Moog (steering and suspension components), and Monroe (shocks and struts).
“This sale not only positions Öhlins Racing 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,” said Jim Voss, CEO of Tenneco, which is based in Northville, Michigan, about 30 miles outside of Detroit.
“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 Öhlins Racing.
Brembo recently sold its 5.6 percent ownership stake in Pirelli to raise cash for the purchase. The sale was worth just over $300M.
We don’t know what to expect from such a merger of two giants of European racing hardware, but it doesn’t seem like too much of a stretch to imagine how bringing in a suspension and racing technology company would help Brembo develop complete suspension and braking solutions.
Tenneco reported that the sale should wrap up early next year, pending regulatory approval, so we might not have to wait too long to see some of the fruits of this acquisition.
