Tenneco Inc has agreed to be acquired by Apollo Global management Inc for $1.6 billion. The sale will take the diversified auto parts supplier private and pay $20 per share, which is twice Tenneco's closing price as of Feb. 22. Under the Tenneco brand, the company will still produce mufflers and other car parts.
The sale wraps a rough stretch for Tenneco. In addition to reporting losses of $35 million in Q4, stock prices for the company have dropped 85% in the last five years. Recent semiconductor shortages have only exacerbated these issues. Both companies hope the purchase will increase Tenneco's ability to invest and grow their production.
Telling it like it is — In a perfect world, more parts = more inventory for dealers. Let's see what this means in OUR world.