Brembo buys suspension maker Ohlins Racing for $405 million (updated)

Brembo NV

11/10/2024 08:26

(Adds details of acquisition, context from paragraph 3, quotes
from statement)
       MILAN, Oct 11 (Reuters) - Italy's Brembo  BRBI.MI  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  PIRC.MI , 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.
    BofA Securities is acting as financial advisor to Brembo,
while Jefferies is acting as lead financial advisor to
Tenneco.
        
  

 (Reporting by Giulio Piovaccari, editing by Giulia Segreti,
Elaine Hardcastle)
 ((giulio.piovaccari@thomsonreuters.com))