Tenneco's (TEN) Ohlins Buyout To Expand Product Portfolio
Zacks Investment Research | Nov 16, 2018 07:57AM ET
Tenneco Inc. (NYSE:TEN) has announced that it inked a deal to acquire a Swedish technology company, Ohlins Racing A.B. (“Ohlins”). The acquisition of Ohlins, which develops suspension systems for the automotive and motorsport industries, is likely to aid Tenneco to progress in the areas of intelligent suspension, autonomous driving and mobility.
Subject to the satisfaction of certain customary closing conditions, the acquisition is likely to close in first-quarter 2019. Founder Kenth Ohlin will retain a minority stake in Ohlins and collaborate with Tenneco to continue with his technological vision. The excellent technology team of Ohlins will aid Tenneco to expand its product offerings for its present and future customers. This collaboration will also help in expanding Tenneco’s business in the mobility markets. The acquisition of Ohlins will speed up the development of advanced original equipment (OE) intelligent suspension solutions.
In third-quarter 2018, Tenneco’s adjusted earnings and revenues beat their respective Zacks Consensus Estimate. Both figures increased year over year, majorly driven by improved growth across all the product applications. In the past year, Tenneco underperformed the Zacks Investment Research
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