Brembo Makes the Biggest Acquisition in Their History with Purchase of Motorsport Titan

Brembo acquires Öhlins Racing in its largest-ever deal.

Oct 6, 2024; Talladega, Alabama, USA; Daniel Suarez (99) has issues early after a spin and pits during the first stage of the YellaWood 500 at Talladega Superspeedway. Mandatory Credit: Vasha Hunt-Imagn Images / Vasha Hunt-Imagn Images

Brembo, a leader in high-performance braking systems, has announced its acquisition of Öhlins Racing. This deal stands as the largest in Brembo's corporate history, marking a monumental milestone as the company expands its portfolio. Öhlins Racing, known for its premium suspension technology, is a major player in various global racing championships, including MotoGP, Formula 1, Superbike, and NASCAR.

Founded in 1976 and based in Upplands Väsby, Sweden, Öhlins Racing has developed a strong industry reputation for precision and performance in suspension technology. The company operates two production facilities in Sweden and Thailand, along with R&D centers in these locations, and distribution branches across the U.S., Germany, Thailand, and Sweden. Their product range encompasses shock absorbers, front forks, steering dampers, and more for the OEM, motorsport, and aftermarket segments.

Brembo's acquisition aligns perfectly with its ambition to expand into new markets and improve its product lineup. By incorporating Öhlins into its umbrella, Brembo aims to solidify its status as a comprehensive provider of automotive parts, capitalizing on emerging trends in mobility. Matteo Tiraboschi, Brembo's Executive Chairman, highlighted the seamless fit between the two entities.

"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. 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," he commented.

This acquisition, valued at USD 405 million (€370 million), will be paid with available cash and is set to close in early 2025, pending regulatory approvals. Jim Voss, CEO of Tenneco, the parent company of Öhlins, explained the transaction's alignment:

“This sale not only positions Öhlins Racing 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.”

Öhlins Racing brings a rich heritage of motorsport excellence to Brembo, with a solid track record of success across major racing platforms. Their ambition of developing the next generation of mechatronic suspension technology complements Brembo's dedication to digital and sustainable innovations. Tom Wittenschlaeger, CEO of Öhlins Racing, expressed optimism about the future under Brembo's aegis.

“As we join forces with Brembo, we are excited to unlock new growth opportunities and leverage our respective strengths and assets to drive innovation and deliver even greater value to our customers and employees,” he stated.

The operational framework of this deal involves advisory support. Brembo’s advisors include BofA Securities for financial insights, while Simpson Thacher & Bartlett and BonelliErede provide legal counsel. On Tenneco’s side, Jefferies LLC leads financial advisement, positioned to ensure a smooth transition.

Brembo’s history of key acquisitions underscores its intent to reach new heights in the automotive industry. Previous moves, such as acquiring SBS Friction in Denmark and J.Juan in Spain, and establishing a state-of-the-art production site in Thailand, illustrate their commitment to growth and innovation. Brembo continues to evolve as a brand, integrating cutting-edge digital technologies and sustainable practices under its strategic vision, “Turning Energy into Inspiration.”