- Tenneco announced the takeover of Öhlins, the Swedish suspension maker, on Nov 19, 2018.
- The deal was valued at $160 million.
- Founder of Öhlins, Kenth Öhlin, will continue to retain a minority stake in the venture.
- An American Fortune 500 company, Tenneco is an OEM supplier of ride control, emissions and other automotive components.
Öhlins Racing A.B., or Öhlins as it is more popularly known, has been acquired by Tenneco Inc. The latter announced the deal recently in a release to the New York Stock Exchange and marks a major turning point for Öhlins, which for long has been one of the leading names in the world of advanced suspension systems. Valued at $160 million, the deal will give full ownership of the Öhlins to Tenneco.
Founded by Kenth Öhlin in 1975, Öhlins made a name for itself as a maker of path-breaking suspension systems for the automotive industry. It is a well-known brand among auto enthusiasts thanks to its long and fruitful association with popular motorsport brands including Formula 1, Formula E, NASCAR and MotoGP.
Tenneco is a Lake Forest, Illinois headquartered company that makes ride- and emission-control products for a variety of automobiles. The company clocked $9.3 billion in revenues for 2017 and employs about 32,000 employees worldwide. Tenneco has also maintained a significant presence in India since the mid-90s and has a production facility each at Pune, Bawal, Hosur and Sanand. The acquisition of Öhlins follows that of Federal-Mogul in October, which is another major supplier of OEM products to automakers and aftermarkets around the world.
Many of the technological breakthroughs achieved by Öhlins made its way into mass-market motorcycles over the years, thus making it a popular and trusted name among motorcycle lovers. The acquisition will help Tenneco break into newer markets and gain access to Öhlins’ intelligent suspension solutions.
Attached below is the full press release from Tenneco.
TENNECO SIGNS DEFINITIVE AGREEMENT TO ACQUIRE ÖHLINS RACING A.B
Addition of technology company enables Tenneco to further capitalize on secular trends in intelligent suspension, autonomous driving and mobility
Lake Forest, Illinois, November 15, 2018 – Tenneco Inc. (NYSE: TEN) announced today that it has signed a definitive agreement to acquire Öhlins Racing A.B. (“Öhlins”), a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries.
“Tenneco’s 20 year relationship with Öhlins has delivered world class products in the intelligent suspension market and provides a strategic entry into advanced performance communities with premium branded products and proprietary Continuously Controlled Electronic Suspension Valve (CES) technology.” said Brian Kesseler, co-CEO, Tenneco. “Öhlins’ technology team will allow us to rapidly grow our product offerings for current and future customers, as well as help us win a larger share of business in developing mobility markets. I am delighted to welcome the Öhlins team as an important part of our new Aftermarket and Ride Performance company.”
The addition of Öhlins will accelerate the development of advanced original equipment (OE) intelligent suspension solutions, while also fast-tracking time to market. It will also enhance Tenneco’s portfolio in broader mobility markets with the addition of Öhlins’ range of premium OE and aftermarket automotive and motorsports performance products.
Founder Kenth Öhlin will retain a minority interest in Öhlins and partner with Tenneco to provide continuity in his strategic and technological vision. He stated: “I am proud of the Öhlins team and all we have accomplished over the last 43 years. We are excited to continue to deliver innovative technologies that can accelerate growth with the full strength and resources of Tenneco behind us.”
The acquisition is expected to close in the first quarter of 2019, subject to regulatory approvals and other customary closing conditions. Total consideration for this acquisition is approximately $160 million, which was contemplated in the leverage targets provided in April 2018 as part of the Federal-Mogul acquisition announcement.
About Tenneco
Headquartered in Lake Forest, Illinois, Tenneco is one of the world’s leading designers, manufacturers and marketers of Ride Performance and Clean Air products and technology solutions for diversified markets, including light vehicle, commercial truck, off-highway equipment and the aftermarket, with 2017 revenues of $9.3 billion and approximately 32,000 employees worldwide.
On October 1, 2018, Tenneco completed the acquisition of Federal-Mogul, a leading global supplier to original equipment manufacturers and the aftermarket with nearly 55,000 employees globally and 2017 revenues of $7.8 billion. Additionally, the company expects to separate its businesses to form two new, independent companies, an Aftermarket and Ride Performance company as well as a new Powertrain Technology company, in late 2019.
About Öhlins
Öhlins or Öhlins Racing AB, is a Swedish company that develops suspension systems for the automotive and motorsport industries and supports performance teams in F1, Formula E, NASCAR and MotoGP racing. Öhlins, with last twelve months revenue of approximately $130 million at current exchange rates, employs 340 people and is headquartered in Upplands Väsby, Sweden, where the main R&D departments and production site are also located. Öhlins also has branches offices and subsidiaries worldwide: Auto Norden and Öhlins CES in Sweden, Öhlins Asia in Thailand, Öhlins Distribution/Technical Centre in Germany, Öhlins USA in North Carolina.
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