Tenneco Inc. (NYSE: TEN) announced today that it has completed
its acquisition of Öhlins Racing A.B. (“Öhlins”), a Swedish
technology company that develops premium suspension systems and
components for the automotive and motorsport industries.
“Öhlins is an integral part of what will become our new
Aftermarket and Ride Performance company. Its premium technology
and brand reputation will strengthen our OE and aftermarket
portfolios while enhancing our position in the global advanced
suspension systems space. This transaction is yet another example
of our strategy to leverage key technologies that will better
position Tenneco to take advantage of secular trends in intelligent
suspension, autonomous driving and mobility,” said Brian Kesseler,
co-CEO, Tenneco.
The agreement to acquire Öhlins was signed and announced on
November 15, 2018. Today’s closing precedes the planned separation
of Tenneco into two independent, publicly traded companies through
a tax-free spin-off to shareholders that will establish an
Aftermarket and Ride Performance company and a Powertrain
Technology company. The spin-off, which is expected to be complete
in the second half of 2019, is part of Tenneco’s transformation
that follows its acquisition of Federal-Mogul in October 2018.
About Tenneco
Headquartered in Lake Forest, Illinois, Tenneco is one of the
world’s leading designers, manufacturers and marketers of Ride
Performance and Clean Air products and technology solutions for
diversified markets, including light vehicle, commercial truck,
off-highway equipment and the aftermarket, with 2017 revenues of
$9.3 billion and approximately 32,000 employees worldwide.
On October 1, 2018, Tenneco completed the acquisition of
Federal-Mogul, a leading global supplier to original equipment
manufacturers and the aftermarket with nearly 55,000 employees
globally and 2017 revenues of $7.8 billion. Additionally, the
company expects to separate its businesses to form two new,
independent companies, an Aftermarket and Ride Performance company
as well as a new Powertrain Technology company, in the second half
of 2019.
About Öhlins
Öhlins or Öhlins Racing AB, is a Swedish company that develops
suspension systems for the automotive and motorsport industries and
supports performance teams in F1, Formula E, NASCAR and MotoGP
racing. Öhlins, with last twelve months revenue of approximately
$130 million at current exchange rates, employs 340 people and is
headquartered in Upplands Väsby, Sweden, where the main R&D
departments and production site are also located. Öhlins also has
branch offices and subsidiaries worldwide: Auto Norden and Öhlins
CES in Sweden, Öhlins Asia in Thailand, Öhlins
Distribution/Technical Centre in Germany, Öhlins USA in North
Carolina.
About the Future Aftermarket and Ride Performance
Company
Following the separation, the aftermarket and ride performance
company will be one of the largest global multi-line, multi-brand
aftermarket companies, and one of the largest global OE ride
performance and braking companies. The aftermarket and ride
performance company’s principal product brands will feature
Monroe®, Walker®, Clevite®Elastomers, Öhlins®, MOOG®, Fel-Pro®,
Wagner®, Champion® and others. The Aftermarket and Ride Performance
company would have 2017 pro-forma revenues of $6.4 billion, with
56% of those revenues from aftermarket and 44% from original
equipment customers, exclusive of the Öhlins transaction.
About the Future Powertrain Technology Company
Following the separation, the powertrain technology company will
be one of the world’s largest pure-play powertrain companies
serving OE markets worldwide with engineered solutions addressing
fuel economy, power output, and criteria pollution requirements for
gasoline, diesel and electrified powertrains. The powertrain
technology company would have 2017 pro-forma revenues of $10.7
billion, serving light vehicle, commercial truck, off-highway and
industrial markets.
Safe Harbor
This release contains forward-looking statements. These
forward-looking statements include, but are not limited to, (i) all
statements, other than statements of historical fact, included in
this communication that address activities, events or developments
that we expect or anticipate will or may occur in the future or
that depend on future events and (ii) statements about our future
business plans and strategy and other statements that describe
Tenneco’s outlook, objectives, plans, intentions or goals, and any
discussion of future operating or financial performance. These
forward-looking statements are included in various sections of this
communication and the words “may,” “will,” “believe,” “should,”
“could,” “plan,” “expect,” “anticipate,” “estimate,” and similar
expressions (and variations thereof) are intended to identify
forward-looking statements. Forward-looking statements included in
this release concern, among other things, Tenneco’s planned
separation into an aftermarket and ride performance company and a
powertrain technology company; Tenneco’s other plans, objectives
and expectations; and other statements that are not historical
facts. Forward-looking statements are subject to a number of risks
and uncertainties that could cause actual results to materially
differ from those described in the forward-looking statements,
including the possibility that Tenneco may not complete the
spin-off of the Aftermarket & Ride Performance business from
the Powertrain Technology business (or achieve some or all of the
anticipated benefits of such a spin-off); the possibility that the
acquisition of Federal-Mogul or the separation may have an adverse
impact on existing arrangements with Tenneco, including those
related to transition, manufacturing and supply services and tax
matters; the ability to retain and hire key personnel and maintain
relationships with customers, suppliers or other business partners;
the risk that the benefits of the acquisition of Federal-Mogul or
the separation, including synergies, may not be fully realized or
may take longer to realize than expected; the risk that the
acquisition of Federal-Mogul or the separation may not advance
Tenneco’s business strategy; the risk that Tenneco may experience
difficulty integrating all employees or operations; the potential
diversion of Tenneco management’s attention resulting from the
separation; as well as the risk factors and cautionary statements
included in Tenneco’s periodic and current reports (Forms 10-K,
10-Q and 8-K) filed from time to time with the SEC. Given these
risks and uncertainties, investors should not place undue reliance
on forward-looking statements as a prediction of actual results.
Unless otherwise indicated, the forward-looking statements in this
release are made as of the date of this communication, and, except
as required by law, Tenneco does not undertake any obligation, and
disclaims any obligation, to publicly disclose revisions or updates
to any forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20190110005191/en/
Tenneco investor inquiries:Linae Golla847 482-5162 (office)224
632-0986 (cell)lgolla@tenneco.comTenneco media inquiries:Bill
Dawson847 482-5807 (office)224 280-4308
(cell)bdawson@tenneco.comMargie Pazikas (Europe)32 (0) 2 706 9025
(office)32 (0) 477 22 6152 (cell)mpazikas@tenneco.com
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