Tenneco has agreed to acquire Ohlins Racing, a Swedish technology company that develops premium suspension systems and components for the automotive and motorsport industries.

"Tenneco's 20 year relationship with Ohlins 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," said Tenneco co-CEO Brian Kesseler.

"Ohlins' 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."

He added Ohlins would be added to Tenneco's new aftermarket and ride performance company.

The addition of Ohlins would accelerate development of original equipment (OE) intelligent suspension solutions while also speeding time to market. It would also enhance Tenneco's product line in broader mobility markets with the addition of Ohlins' range of premium OE and aftermarket automotive and motorsports performance products.

Founder Kenth Ohlin will retain a minority interest in Ohlins and work with Tenneco to provide continuity of his strategic and technological vision.

He said: "I am proud of the Ohlins team and all we have accomplished over the last 43 years. We are excited to continue to deliver innovative technologies that can accelerate growth with the full strength and resources of Tenneco behind us."

The acquisition is expected to close in the first quarter of 2019, subject to the usual regulatory approvals and closing conditions.

Total consideration is approximately US$160m which was contemplated in the leverage targets provided in April 2018 as part of Tenneco's Federal-Mogul acquisition announcement.

Tenneco completed the acquisition on 1 October 2018 and plans to separate its businesses to form two new, independent companies, an aftermarket and ride performance company as well as a new powertrain technology company, in late 2019.

Following the separation, the aftermarket and ride performance company will be one of the largest global multi-line, multi-brand aftermarket companies, and one of the largest global OE ride performance and braking companies, Tenneco said.

The company's main product brands will be Monroe, Walker, Clevite Elastomers, Moog, Fel-Pro, Wagner, Champion and others. The operation expects 2017 pro-forma revenues of $6.4bn, with 57% of those revenues from aftermarket and 43% from original equipment customers.

Tennenco said the powertrain technology company will be one of the world's largest pure-play powertrain companies serving OE markets worldwide with engineered solutions addressing fuel economy, power output, and criteria pollution requirements for gasoline, diesel and electrified powertrains. It would have 2017 pro-forma revenues of $10.7bn, serving light vehicle, commercial truck, off-highway and industrial markets.