Italian brake manufacturer Brembo continues to acquire other companies to integrate into its portfolio. This time, the company is acquiring SBS Friction, AS. The Danish company makes innovative and eco-friendly sintered and organic material brake pads.
Speaking about the transaction, Brembo’s Chairman, Alberto Bombassei, said:
“We are particularly glad to welcome SBS Friction in our Group. Despite the highly complex market context, Brembo has maintained its natural propensity to invest in innovation. This acquisition is an important step in our strategy: it enables us to integrate even more specific competences in a key sector, to further strengthen our range of ‘made-in-Brembo’ solutions for the benefit of our customers.”
SBS Friction’s Chairman Peter Eriksen Jensen appears to be equally happy with the agreement:
“Brembo has long been a trustworthy partner that knows the value of SBS Friction’s technological knowhow and its strong niche position. We are pleased that SBS Friction will get a strong, long-term, industrial owner who will support the company’s continued development. The transaction is a good solution for SBS Group, SBS Friction, the employees, and the city of Svendborg.”
The agreement calls for Brembo to take a 100% stake in SBS Friction AS. Once completed, the deal will allow the integration of such strategic components like brake pads into Brembo’s current product range. Another key parameter of the acquisition is SBS Friction AS’s attention to the environment and its place in the motorcycle sector.
It’s not yet clear whether SBS produced products will retain their SBS Friction branding or become Brembo branded parts.
Brembo will pay 224 million Danish Kroner (approximately $36.6M) in cash for SBS Friction AS. The parties expect to close the deal by the end of the first quarter of 2021.