Suspension manufacturer Öhlins Racing AB has been sold to American Fortune 500 company Tenneco. Öhlins founder Kenth Öhlin (pictured left below with Tenneco co-CEO Brian Kesseler) agreed to sell Tenneco a majority share in the Swedish company, hereby making it a subsidiary of the Illinois-based automotive component manufacturer.
Öhlin, who founded Öhlins in 1976, will continue to hold a minority interest in the company. According to Tenneco, the deal is valued at $160 million and will close in the first quarter of 2019 (pending regulatory approval and closing conditions). Continue reading below for the official statements from both companies.
Öhlins Press Release:
Kenth Öhlin today announced an agreement to sell a majority share in Öhlins Racing AB to Tenneco Inc. Öhlins will become a subsidiary of Tenneco, joining one of the largest global multi-line, multi-brand OEM and aftermarket companies in the world.
Öhlins Racing has been an integral part of the motorsport, motorcycle and automotive industry since 1976, when Kenth Öhlin founded the company and created his first legendary motocross shock. Since then, Öhlins have been setting global industry standards by offering state-of-the-art suspension technology to racing teams, OEM partners and aftermarket. With distribution in 50 countries and manufacturing facilities in Europe and Asia, Öhlins has managed to combine global reach with world class industry knowledge.
With the acquisition of Öhlins, Tenneco will enhance their position as leading global designers, manufacturers and distributors of ride performance products and technologies. Öhlins will be a subsidiary of Tenneco and keep both its strong brand and team. Kenth Öhlin will continue to be part of Öhlins and provide continuity in strategic and technological development. He will retain a minority interest in the company and serve on the board of Öhlins.
Kenth Öhlin comments “Together, Öhlins and Tenneco will be a very strong constellation. After considering the strengths of both companies, I made the hardest decision of my life — to sell my life’s work. I am absolutely convinced that we are going to develop very positively in the future, and that Öhlins will benefit from the opportunities that will now arise due to Tenneco’s entrance.”
Öhlins’ strong position as a technology company with high-end suspension for motorcycle, automotive and mountain bike will complement and further strengthen Tenneco’s advanced ride performance portfolio.
Brian Kesseler, co-CEO of Tenneco, comments “Öhlins’ technology team will allow us to rapidly grow our premium product offerings for current and future customers, as well as help us win a larger share of business in developing mobility markets.”
Henrik Johansson, CEO of Öhlins, comments “Tenneco will help grow our business on a global scale. Tenneco and Öhlins have been working together for 20 years, delivering outstanding products for the intelligent suspension market. This is the beginning of something even bigger.”
The acquisition is expected to close in early 2019, subject to regulatory approvals and other customary closing conditions.
Tenneco Press release
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.