DRiV Inc. is the name of an aftermarket parts and ride performance company that is being launched in the wake of Tenneco Inc.’s separation into two independent companies, Tenneco announced.
Slated to debut in the second half of this year, DRiV is a more than $6 billion startup that will be publicly traded and built from the combined strengths of Tenneco, Federal-Mogul and Öhlins, according to Lake Forest, Ill.-based Tenneco.
In 2018, investor Carl Icahn sold auto-parts maker Federal-Mogul to competitor Tenneco for $5.4 billion. On Oct. 1, 2018, Tenneco completed the acquisition of Federal-Mogul, a leading global supplier to original equipment manufacturers and the aftermarket with nearly 55,000 employees globally and 2017 revenue of $7.8 billion.
At the time of the completed acquisition, Tenneco’s stock was trading at $41.99. On Feb. 15, it closed at $36.25.
Tenneco’s separation into the two independent, publicly traded companies — DRiV and Tenneco — is expected to be complete in the second half of 2019.
DRiV will be one of the largest global multiline, multibrand aftermarket suppliers and one of the largest global original equipment ride performance and braking suppliers to aftermarket, light vehicle and commercial vehicle customers, according to Tenneco.
“We are strategically positioned to capitalize on secular trends such as the expansion of vehicles in operation globally, as well as growth in intelligent suspension, new mobility models and the evolution of autonomous driving,” Brian Kesseler, Co-CEO of Tenneco and the future chairman and CEO of DRiV, said in a release.
DRiV will be headquartered in the greater Chicago area.
DRiV’s aftermarket business, which will be known as Motorparts, will develop, manufacture and distribute a broad portfolio of products in the global vehicle aftermarket.
Through the acquisition of Federal-Mogul in 2018, the company has become one of the largest suppliers of replacement parts to the global aftermarket. Its brands includes Monroe, Champion, Öhlins, MOOG, Walker, Fel-Pro, Wagner, Ferodo Rancho, Thrush, National, Sealed Power, Axios and others.
The original equipment business, known as Ride Performance, is one of the world’s largest ride performance businesses, developing, manufacturing and supplying leading global original equipment manufacturers with shock absorbers, struts, NVH [noise, vibration, and harshness] performance materials and brake friction, Tenneco said.
After the spinoff, the remaining Tenneco businesses will focus on powertrain systems technology and will retain the Tenneco name.
In 2017, Tenneco had $9.3 billion in revenue and 32,000 employees worldwide. Its 2018 earnings were scheduled to be released Feb. 25.