Auto components maker Tenneco Inc. has entered into a preliminary agreement to purchase the suspension business of Gruppo Marzocchi, an Italian-based worldwide leader in supplying suspension technology to mountain bike and motorcyle makers.
The agreement is the initial step in the purchase process. A final agreement and closing on a potential purchase of Marzocchis suspension business is dependent on a number of conditions and the legally-required consultation with the works councils representing Marzocchi employees. Those consultations began July 10.
This acquisition would be made through Tennecos assumption of the debt associated with Marzocchis suspension business, which was approximately $15 million as of April 30, 2008.
An acquisition by Tenneco of Marzocchis suspension business would leverage the brand, technology and product synergies of the two companies, providing customers with integrated suspension systems (forks, shock absorbers and elastomers) for motorcycles and other applications.