Tenneco Looks To Accelerate Growth With Strategic Investment

Tenneco, Inc.—designer, manufacturer and marketer of automotive products for original equipment and aftermarket customers—announced a strategic investment from Apollo Fund X into the company’s Clean Air and Powertrain businesses. The company claims this is an important step in unlocking growth opportunities and strengthening its long-term position as a leading global automotive supplier. American Industrial Partners, an industrial-focused private equity firm with a strong track record in manufacturing and automotive, will invest alongside Apollo Fund X.

Tenneco will continue to operate as one company with no changes to the management team and structure, operational cadence or strategic priorities. According to a press release, this access to capital will enhance Tenneco’s ability to execute streamlined growth strategies and provide the flexibility to invest in a pipeline of emerging opportunities. The transaction will drive both organic and inorganic growth, positioning the business for top-tier operational performance and enhanced execution.

Since its acquisition by funds managed by affiliates of Apollo in November 2022, Tenneco says it has undergone a significant transformation, putting in place a world-class management team, optimizing operations and investing in advanced manufacturing capabilities. It goes on to say that these efforts have resulted in best-in-class business performance, including top-quartile EBITDA margins, and have laid the groundwork for the next phase of growth supported by this investment.

“Over the past two years, we have built an incredible company with a culture rooted in safety, financial performance and operational excellence,” said Jim Voss, CEO of Tenneco. “With Apollo’s continued support and belief in Tenneco’s long-term potential, this investment enables us to execute more strategically as we deliver on our purpose of being the best partner and world’s best manufacturer and distributor in the transportation industry.”

“This investment marks a critical step in Tenneco’s transformation,” said Michael Reiss and Shahid Bosan, deal team leads at Apollo. “Since acquiring Tenneco, we have seen tremendous progress, with the team delivering exceptional operational and financial results. This move reflects the strong partnership between Apollo and Tenneco’s leadership and reinforces our shared commitment to long-term success in a sector we believe in.”

This transaction is expected to be completed in the second quarter of 2025.