Tenneco Inc. has agreed to be acquired by affiliates of Apollo Global Management Inc. in a $1.6 billion deal.
In 2018, tenneco agreed to acquire another major supplier Federal-Mogul for $5.4 billion.
Apollo is paying $20 a share, about twice Tenneco’s last closing price. The deal should be completed in the second half of the year.
The sale wraps a very trying stretch for Tenneco, including a steady slide in the stock price over the past five years.
The supplier of exhausts and other car parts will continue to operate under the Tenneco brand following the deal, the companies said.
With the semi-conductor shortages caused by the pandemic expected to largely resolve themselves later this year, growth in original equipment revenues (with Tenneco sales were estimated at $12.6 billion in 2020) and aftermarket sales, the automotive industry should see better times ahead this year and next.