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Tenneco Inks Deal To Acquire Öhlins Racing A.B. Of Sweden
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Tenneco Inc. has signed a definitive agreement to acquire Öhlins Racing A.B., a Swedish technology company that develops premium suspension systems and components for the automotive and motorsports industries.
The addition of Öhlins will accelerate the development of advanced original equipment (OE) intelligent suspension solutions, while also fast-tracking time to market, company officials said, adding that 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. “I am proud of the Öhlins team and all we have accomplished over the last 43 years,” he said. “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 the acquisition is approximately $160 million.
On October 1, 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.
The addition of Öhlins will accelerate the development of advanced original equipment (OE) intelligent suspension solutions, while also fast-tracking time to market, company officials said, adding that 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. “I am proud of the Öhlins team and all we have accomplished over the last 43 years,” he said. “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 the acquisition is approximately $160 million.
On October 1, 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.
