US auto parts maker Tenneco has enlisted banks to arrange a potential stock market listing, as it charts a course back to public markets after its 2022 privatisation.
According to unnamed sources cited by Bloomberg, Apollo Global Management, which acquired Tenneco in a deal valued at more than $7bn in enterprise value – paying $1.6bn in equity – is weighing up how best to monetise its holding.
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Bank of America, Barclays, Citigroup and JPMorgan Chase have been hired to oversee the process.
A full or partial flotation is the favoured route, though Apollo is also considering whether to keep Tenneco’s Driv aftermarket parts division outside any public structure.
Tenneco is forecast to generate EBITDA more than $2bn for the current financial year – roughly twice the figure recorded prior to the Apollo takeover.
Against comparable listed peers, that performance points to a valuation of around $14bn.
No final decisions have been made, and the offering’s terms remain subject to change, the report added.
The timing of the prospective listing coincides with a regulatory shift in the US that has broadly favoured conventional vehicle manufacturers and parts suppliers.
The removal of consumer tax incentives for electric vehicles and the easing of emissions requirements under President Trump’s administration have revived interest in petrol-powered drivetrain components.
Apollo’s activity around Tenneco comes alongside its wider moves in the automotive supply sector.
Last month, automotive tech group Forvia agreed to sell its Interiors Business Group to Apollo-managed funds in a carve-out transaction with an enterprise value of €1.82bn ($2.13bn).
The division, which supplies instrument panels, door panels and centre consoles to vehicle manufacturers, is set to operate as a standalone company under Apollo’s ownership.
