Suspension giant Öhlins sold for $160 million

Swedish suspension specialists Öhlins has been acquired by Tenneco Inc

Published on Nov 21, 2018 11:48:00 AM

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Öhlins Racing has been an integral part of the motorsport, automotive and the motorcycle industry since its inception in 1976. Öhlins specializes in state of the art suspension systems and offers its products to multiple championship winning race teams, OEM partners and as aftermarket options. The Swedish company is one of the most revered and recognizable names in the world of high end suspension and has just been sold.

The buyer is Tenneco Inc., an Illinois based automotive conglomerate that also owns two other suspension makers, Monroe and Rancho. Further automotive businesses under the Tenneco umbrella include companies that make emission control and exhaust systems. Tenneco has just announced that it has signed an agreement to acquire Öhlins Racing A.B. for around $160 million (Rs. 1,143 crore), after buying the majority share from founder and namesake Kenth Öhlin.

Tenneco has quite a long history with Ohlins, having partnered with them to develop their Continuously Controlled Electronic Suspension valve (CES) technology about two decades ago. The American company has also had other associations with the high end cycle and motorcycle suspension industry, having once owned the Italian Marzocchi brand. Tenneco also works on heavy and commercial vehicle suspension units with their Ride Performance unit. With Öhlins, Tenneco aims to grow its product offering and invest in areas the Öhlins is innovating in, namely it’s electronically controlled semi-active suspension systems

The acquisition is set to take place in early 2019. It’s worth noting that founder Kenth Öhlin will retain a minority stake in the company, and will continue to oversee technical development and operations.

“Tenneco’s 20 year relationship with Öhlins has delivered world class products in the intelligent suspension market and provides a strategic entry into advanced performance communities with premium branded products and proprietary Continuously Controlled Electronic Suspension Valve (CES) technology. The 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.” said Brian Kesseler, co-CEO, Tenneco.

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