International. With Öhlins, Brembo expands its offering for the automotive market, reinforcing its role as a provider of integrated and intelligent solutions for its customers.
This agreement marks the largest acquisition in Brembo's history and further strengthens the Group's portfolio of brands. Öhlins has a strong racing heritage and presence in major championships as a recognized supplier in MotoGP, Formula 1, Superbike, NASCAR and others.
The agreement between Brembo and Tenneco was signed on October 11 of this year, in order to acquire a 100% stake in Öhlins Racing, the leading manufacturer of premium and high-performance suspension technology for motorcycles and automobiles in the original equipment, motorsport and aftermarket segments.
"Öhlins is a solid choice for Brembo. It is a world-renowned brand, with a strong business and an unrivalled reputation, both on the track and on the road," said Matteo Tiraboschi, Brembo's executive chairman. "We welcome Öhlins to our Group as a great opportunity to expand our offering for the automotive market. With this addition, we take another step forward in our strategy to provide integrated and intelligent solutions to our customers, leveraging synergies in key vehicle technologies."
Öhlins Racing is projected to close 2024 with a turnover in the range of $144 million, with an expected adjusted EBITDA margin of between 21% and 22%.
"By joining 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," said Tom Wittenschlaeger, CEO of Öhlins Racing. Öhlins Racing is committed to developing the next generation of mechatronic suspension technology for the road and track. This innovation-driven approach will reinforce Brembo's mission to be a solution provider for future mobility.
This agreement marks the largest acquisition in Brembo's history. The purchase price is $405 million, on a cash/debt free basis, subject to customary price adjustment mechanisms. The acquisition will be paid for with cash on hand. The acquisition is subject to customary regulatory approvals and is expected to close in early 2025.
This acquisition continues Brembo's investment in the area of motorcycles and motorsport. In 2021, the Group acquired SBS Friction in Denmark and J.Juan in Spain, completing the offer of brake system solutions dedicated to two-wheelers. In February this year, Brembo announced its entry into Thailand with a new production site dedicated to brake systems for motorcycle manufacturers. Brembo also controls Marchesini, the leading brand in the design and production of light alloy wheels for racing and road motorcycles. The two-wheeler business today accounts for approximately 13% of Brembo's total revenues.
