Brembo to Acquire Öhlins
Deal for premium suspension brand worth $405 million
Brake manufacturing behemoth Brembo announced a deal to acquire Swedish suspension maker Öhlins in a US$405 million transaction that would put two of the biggest names in premium motorcycle componentry together. The deal, which is still subject to customary regulatory approvals, is expected to close in early 2025.
Brembo will be acquiring a 100% stake in Öhlins from current owner Tenneco. Under the terms of the agreement, the acquisition will be paid for in available cash. The deal comes after Brembo sold off its 5.58% stake in tire brand Pirelli for €282.9 million (US$309.6 million) earlier this month.
“Öhlins is a strong fit for Brembo. It is a world-renowned brand, with a solid business and an unrivaled reputation, both on the racetrack and the road,” says Matteo Tiraboschi, Brembo executive chairman. “We welcome Öhlins to our Group as a great opportunity to expand our 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.”
Known for its signature gold-colored components, Öhlins employs about 500 people across factories in Sweden and Thailand, as well as two R&D centers in those countries. Öhlins also owns four distribution centers and testing branches in the U.S., Germany, Thailand, and Sweden. Öhlins is projected to have a gross revenue in the range of US$144 million in 2024, with an expected adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin between 21% and 22%.
“We’re confident that Brembo is the right partner to take Öhlins Racing to the next level,” says Jim Voss, Tenneco chief executive officer. “This sale not only positions Öhlins and its employees for continued success under Brembo’s leadership in the market, but it also supports Tenneco’s strategy of streamlining our business portfolio and strengthening our balance sheet as we continue to execute on our long-term vision.”
The acquisition is the latest in a series of moves that expand Brembo’s grip in the two-wheeled space. In 2021, Brembo added two motorcycle braking component brands in SBS Friction and J.Juan, and opened a new factory in Thailand this February for producing motorcycle braking systems. Brembo also owns a 70% share of wheel manufacturer Marchesini. Motorcycles currently make up about 13% of Brembo’s revenues.
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Dennis has been a part of the Motorcycle.com team since 2008, and through his tenure, has developed a firm grasp of industry trends, and a solid sense of what's to come. A bloodhound when it comes to tracking information on new motorcycles, if there's a new model on the horizon, you'll probably hear about it from him first.
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I seem to remember Yamaha having an interest in Ohlins . Perhaps time for Brembo to take a major stake in Yamaha , thereby leverage all technology . China is eating everyone's lunch , and need to find a way to stay a step ahead .
This could be great with Ohlins having extra resources (money) for R&D. It could also be terrible of Brembo tries to make Ohlins into Brembo.