Italian brake manufacturer Brembo announced on Friday its acquisition of Swedish suspension maker Öhlins Racing for USD 405 million, marking Brembo’s largest purchase to date. The deal, set to be completed with available cash, involves fully acquiring Öhlins from Tenneco, which is backed by Apollo Global Management.
Brembo Executive Chairman Matteo Tiraboschi highlighted the strategic importance of the acquisition, noting that Öhlins aligns well with Brembo’s goal of expanding its offerings in 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,” Tiraboschi said in a statement.
Öhlins Racing, a renowned name in suspension technology, is expected to generate approximately USD 144 million in revenue by the end of 2024. The company manufactures a range of advanced suspension products, including shock absorbers, front forks, and steering dampers, alongside cutting-edge software and algorithms. Öhlins is also a prominent supplier in motorsports, providing technology for premier competitions like Formula 1 and MotoGP.
The acquisition underscores Brembo’s ambition to diversify its product line beyond premium braking systems and to position itself as a broader solutions provider for future mobility. Öhlins’ focus on developing next-generation mechatronic suspension systems complements Brembo’s long-term goals of integrating key technologies for enhanced vehicle performance.
Brembo, controlled by Italy’s Bombassei family, recently raised over €280 million through the sale of its 5.6% stake in tire manufacturer Pirelli. This sale also quelled rumors of a merger between the two Italian companies.
Öhlins operates with around 500 employees across two production plants in Sweden and Thailand, along with R&D centers and distribution branches in the US, Germany, and Thailand. Öhlins CEO Tom Wittenschlaeger expressed optimism about the merger, saying, “We are excited to unlock new growth opportunities and leverage our respective strengths to drive innovation.”
The acquisition is expected to close in early 2025, with BofA Securities advising Brembo and Jefferies leading financial advice for Tenneco.