If you have ridden on Ohlins suspension, you’ll want to pay attention to a recently signed business deal. Tenneco (NYSE Ticker TEN) has signed a definitive agreement to acquire Swedish suspension company Ohlins. In a deal valued at $160M, Tenneco will acquire Ohlins Racing A.B. for its premium suspension systems and components for the automotive and motorsport industries.
The deal reportedly revolves around Ohlin’s intelligent suspension systems and proprietary Continuously Controlled Electronic Suspension Valve (CES) technology. Previously, Tenneco and Ohlins had been in a business relationship for 20 years.
Tenneco co-CEO Brian Kessler said,
“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.”
It is thought that the acquisition of Ohlins will help Tenneco in the development of advanced original equipment (OE) intelligent suspension solutions while speeding the product to market.
Kenth Ohlin will retain a minority share in Ohlins and continue to provide support to Tenneco. He will provide continuity with his past and technological vision. When queried about the deal, Kenth said:
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 deal is set to close in the first quarter of 2019 and is subject to regulatory approvals and other closing conditions.
I have to wonder what changes a large NYSE listed company will bring to a specialty manufacturer of primarily motorcycle suspensions. Let’s hope that Ohlins quality will continue in the future.