News Brembo acquires Öhlins Racing for a record sum

Italian company Brembo, world leader in high-end braking systems, today announced a historic agreement with Tenneco to acquire Öhlins Racing, a specialist in suspension technology.

Brembo makes the biggest acquisition in its history

405 million dollars (around 370 million euros) is the astronomical amount it cost Brembo to acquire the entirety of Öhlins Racing, a Swedish manufacturer of high-end suspension technologies. This is the largest acquisition in Brembo's history, marking a key step in the group's strategic expansion.

Öhlins Racing: a strong motorsport heritage

Founded in 1976, Öhlins Racing has gradually established itself as a major player in the field of suspensions, whether for cars or motorcycles destined for prestigious competitions such as MotoGP, World Superbike (WSBK), Formula 1 or NASCAR. Its products include shock absorbers, front forks and steering dampers, as well as sophisticated software and algorithms.

In 2024, the Stockholm, Sweden-based company is expected to post sales of around $144 million, with an adjusted EBITDA margin of between 21% and 22%. Öhlins employs 500 people at two production sites in Sweden and Thailand, two R&D centers, and four distribution subsidiaries in the USA, Germany, Thailand and Sweden.

Brembo ready to face future challenges in the automotive and two-wheeler sectors

Today, Brembo can proudly claim over 500 world titles,
won in both two-wheel and four-wheel competitions. Brembo

This acquisition strengthens Brembo's position in the two-wheeler and motorsports sector, a key area for the company. By 2021, Brembo had already made strategic acquisitions with SBS Friction in Denmark and J.Juan in Spain, expanding its offering of braking solutions for two-wheelers.

In February 2024, Brembo also announced the opening of a production facility in Thailand dedicated to motorcycle braking systems, further consolidating its presence in the two-wheeler market, which accounts for around 13% of its revenues. With its advanced suspension technology, particularly in the mechatronics field, Öhlins perfectly complements Brembo's strategy of expanding its offering of global, intelligent technological solutions for tomorrow's mobility.

Statements by the various parties involved in the transaction:

Matteo Tiraboschi, Brembo's Executive Chairman, described Öhlins as "the ideal solution" for the company
Öhlins is a world-renowned brand, with a solid business and an unrivalled reputation, both on the track and on the road. This acquisition takes us a step further in our strategy to offer our customers integrated intelligent solutions, exploiting technological synergies at the vehicle level.

Tom Wittenschlaeger, CEO of Öhlins Racing, expressed his enthusiasm at the prospect of joining Brembo
We are delighted to discover new growth opportunities by joining forces with Brembo, and to leverage our respective strengths to drive innovation and deliver even greater value to our customers and employees.

For his part, Jim Voss, CEO of Tenneco, the former owner of Öhlins via Apollo Global Management, emphasized that the sale is part of Tenneco's strategy to simplify its business portfolio and strengthen its balance sheet. He added: "We are convinced that Brembo is the ideal partner to take Öhlins to the next level."

Completion of the transaction, subject to regulatory approvals, is expected in early 2025... It should be noted that Brembo, controlled by the Italian Bombassei family with a stake of around 70%, will finance this acquisition from its available cash, strengthened in part by the recent sale of its 5.6% stake in tire manufacturer Pirelli, for 280 million euros. This sale put an end to speculation about a possible merger between the two Italian groups.