Automotive products maker Tenneco to be acquired by Apollo Funds for $7.1bn
Tenneco, an American automotive products manufacturer, has agreed to be acquired by funds managed by affiliates of Apollo (Apollo Funds) in an all-cash deal worth around $7.1 billion, which is inclusive of its debt.
The deal will enable the publicly-listed Tenneco to become a privately-held company.
As per the terms of the deal, Tenneco’s shareholders are being offered $20 per share.
Tenneco is engaged in designing, manufacturing, and marketing automotive products for original equipment manufacturers (OEMs) and aftermarket customers. The company’s full year 2020 revenues were $15.4 billion and it has a workforce of around 73,000 working at over 270 sites around the world.
Automotive products maker Tenneco to be acquired by Apollo Funds for $7.1bn. Photo courtesy of USEPA Environmental-Protection-Agency/Wikimedia Commons.
Brian Kesseler — Tenneco CEO said: “Over the last several years, Tenneco has transformed its business to succeed in today’s environment. This transaction marks a significant milestone and will provide us with a new and exciting platform from which we can continue our global strategy in an evolving and dynamic mobility landscape.
“In Apollo, we have a partner that recognizes the strength of our product portfolio and our ability to serve leading OEM and aftermarket blue-chip customers globally. Specifically, this partnership will allow us to continue to invest in and grow Tenneco’s multiple segments and global footprint.”
After the closing of the deal, the company’s shares will be delisted from the New York Stock Exchange (NYSE). Tenneco will retain its brand and maintain a global footprint.
Michael Reiss — Apollo Partner said: “Tenneco is a key solutions provider for global mobility markets with a long-held commitment to innovation and high-quality service. We look forward to working with the Tenneco team to build on the strong foundation in place today, investing across their platform and product categories for growth and delivering innovative solutions for customers.”
The deal has been approved unanimously by the Tenneco’s board of directors. It is subject to approval by Tenneco’s shareholders, regulatory approvals, and other conditions, following which it is expected to close in the latter half of this year.