Brembo expands footprint with new Öhlins acquisition for $405 million

Brembo’s Bold Move in the Automotive Industry

Brembo’s acquisition of Öhlins marks a significant milestone for the Italian brake manufacturer. This strategic move, valued at $405 million, will allow Brembo to strengthen its product offerings in the racing and aftermarket sectors. For car enthusiasts, this is an exciting development, as it brings together two giants of the automotive world, both of which are synonymous with high performance, quality, and innovation.

Brembo, known for its advanced braking systems, has long been a favorite among enthusiasts and professionals alike. Whether on the track or the road, Brembo’s products have set the standard for braking performance, precision, and durability. By adding Öhlins to its portfolio, Brembo is positioning itself as an even more formidable force in the industry.

Öhlins, a Swedish suspension manufacturer, has earned a reputation for its cutting-edge suspension technology, providing products that enhance vehicle performance and handling. The company supplies parts to some of the biggest names in motorsports, including MotoGP, Formula 1, World Superbike, and NASCAR. This acquisition is a perfect match for Brembo, as both companies share a passion for performance and excellence in engineering.

The Deal That Shook the Industry

Brembo’s decision to purchase Öhlins from Tenneco, a portfolio company backed by Apollo Global Management, was a calculated move aimed at expanding its influence in the automotive world. The $405 million deal is Brembo’s largest acquisition to date, and the company will be paying for the transaction through its available cash reserves. Regulatory approval for the deal is expected in early 2025, at which point Brembo will take full ownership of Öhlins.

For enthusiasts and professionals in the automotive industry, this acquisition is significant. Brembo’s purchase of Öhlins means that the two companies will now work together to develop innovative solutions for the automotive market. As part of Brembo’s strategy to provide integrated intelligent solutions, this acquisition will likely lead to advancements in suspension and braking technologies.

Öhlins’ Legacy of Excellence

Öhlins is a world-renowned brand with a long history of excellence in suspension manufacturing. Founded in 1976 by Kenth Öhlin, the company has become a household name in motorsports, providing high-performance suspension components to some of the world’s most prestigious racing teams. Öhlins’ portfolio includes shock absorbers, front forks, steering dampers, software, algorithms, and other accessories, all of which are designed to improve vehicle handling and performance.

One of Öhlins’ key strengths is its involvement in a wide range of motorsports disciplines. The company supplies suspension components to teams in MotoGP, Formula 1, World Superbike, and NASCAR, among others. This experience in high-stakes racing environments has allowed Öhlins to develop products that deliver exceptional performance, even under the most demanding conditions.

For Brembo, acquiring Öhlins means gaining access to this wealth of expertise and technology. It also opens up new opportunities for collaboration and innovation, particularly in the areas of suspension and braking integration. Together, Brembo and Öhlins will be able to offer customers even more advanced and high-performance solutions.

The Future of Performance with Brembo and Öhlins

As Brembo and Öhlins join forces, the possibilities for future innovations are vast. Both companies have a strong track record of pushing the boundaries of performance and engineering, and this acquisition will only accelerate that trend. Car enthusiasts can look forward to new and improved products that combine the best of Brembo’s braking technology with Öhlins’ suspension expertise.

One of the key areas where this partnership could make a significant impact is in motorsports. With Brembo’s braking systems and Öhlins’ suspension components working in tandem, teams in MotoGP, Formula 1, and other racing series could see even greater performance gains. This could lead to faster lap times, improved handling, and ultimately, more competitive racing.

In addition to motorsports, Brembo and Öhlins will also continue to serve the aftermarket automotive industry. Both companies have a strong presence in this space, providing high-performance parts to car enthusiasts and professionals alike. Whether it’s upgrading a daily driver or building a track-ready race car, customers will benefit from the combined expertise of these two industry leaders.

Brembo’s Recent Moves in the Industry

Brembo’s acquisition of Öhlins is part of a broader strategy to expand its influence in the automotive world. In recent years, Brembo has made several key acquisitions, including AP Racing, J.Juan, and SBS Friction, all of which are involved in the racing and performance sectors. These acquisitions have allowed Brembo to diversify its product offerings and strengthen its position as a leader in high-performance automotive parts.

Earlier this year, Brembo also sold its 5.6% ownership stake in Pirelli, raising an estimated $315 million. This move was likely part of the company’s strategy to free up capital for future investments, such as the purchase of Öhlins. With this acquisition, Brembo is positioning itself for continued growth and success in the coming years.

A Perfect Fit for the Future

Brembo’s Executive Chairman, Matteo Tiraboschi, has expressed confidence that Öhlins is a perfect fit for the company. In a statement about the acquisition, Tiraboschi said, “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.”

Tiraboschi also emphasized that the acquisition will allow Brembo to expand its offerings for the automotive market and take another step forward in its strategy to provide integrated intelligent solutions. With this addition, Brembo is well-positioned to continue its growth and innovation in the automotive industry.

Öhlins’ CEO, Tom Wittenschlaeger, echoed Tiraboschi’s sentiments, saying that joining forces with Brembo will unlock new growth opportunities and allow both companies to leverage their strengths to drive innovation. This partnership will undoubtedly result in exciting new products and technologies for automotive enthusiasts and professionals alike.

Conclusion

Brembo’s acquisition of Öhlins for $405 million is a game-changer for the automotive industry. This deal brings together two giants of the performance world, each with a long history of excellence in their respective fields. With regulatory approval expected in early 2025, Brembo and Öhlins are poised to deliver even greater value to their customers through innovative and high-performance products.

For car enthusiasts, this is an exciting time. The combination of Brembo’s braking expertise and Öhlins’ suspension technology promises to deliver new levels of performance, both on the racetrack and on the road. As Brembo continues to expand its influence in the automotive world, we can expect to see even more exciting developments in the years to come. Photo Credit – Polestar / WRS