“We want to acquire a large company that complements us”
The executive vice president of Brembo, brake firm, announces that it goes shopping
Brembo , the brake specialist company, has gone shopping. “We have a sound financial structure to deal with this acquisition.” in the words of its executive vice president, Matteo Tiraboschi .
Brembo is the supplier of the brakes of practically 100% of the world’s high-end vehicles. Regarding its financial numbers, in the first half of the year it declared a turnover of 1,323.8 million euros, 1.2% less. Its net operating margin (EBIT) stood at 13.2% to 174.5 million.
No geographical limitation for the acquisition is marked, the company could be both Chinese and American or European, but they do look for certain characteristics. “We want to acquire a large company because, as demonstrated, size is important. It must be a high-tech company with a high percentage of investment in R&D.”
But it does not have to have a product far from the manufacturing scope of the Bergamo company, nor something that adds more brakes to its catalog. “We are looking for a firm that generates value in combination with our products, something that complements us.”
There is then the question of whether it should be an electronic company related to digitalization, or even a small electric car company. To try to guide us, he replies: “Yes, it could be any of those cases. For example, we are increasingly offering more electric brakes, so anything that is related to that area could be interesting for us.”
FEES, NO PROBLEM
That electricity growth, according to Alberto Bombasei , president and founder of Brembo, is being motivated by emissions legislation. “It is affecting us, but we are prepared to respond in a technologically adjusted way to the needs of the client. Regarding sustainability, the brakes do not emit CO2, but particles. Although these are marginal emissions with respect to carbon dioxide, we have the capacity to achieve totally clean brakes by 2025 “.
On the other hand, the trade war between China and the US, which is now also affecting Europe, is not a problem for Brembo. “It is because we are ‘domestic’ in the areas where we produce. For example, what is sold in China is produced there. The same in the US or Europe. That means that in the face of a tariff clash we almost see an opportunity that a problem, “says Tiraboschi.
The increase in worldwide motorcycle sales and the growth of the vehicles of the so-called last-mile delivery has had a positive impact on two important business divisions for Brembo.
“We are the leading motorcycle supplier – and almost the only one – in India, one of the most populous countries in the world, whose income level makes the motorcycle a very widespread mode of transport. As for commercial vehicles, we are satisfied with its results, since we have paid a lot of attention to it and we believe that the future trend is constantly increasing, “says President Bombasei.
Instead, Brembo has had to close its activities in Argentina because “basically we have run out of manufacturers there, but we have moved the activity to our facilities in Brazil to meet the demand of the South American market that is developing in a positive way.”
President and vice president are satisfied with the development of their activities in Spain. “It is our specialized center of ‘aftermarket’ for the whole European area and we see an increase in its activities. Its business scope is growing thanks for example to customers like Seat .”
As for the future, they are very hopeful with their new product for high-performance cars called Dyadema , which has a technology that directs the air flow to the disc to cool it and thus improve its performance and useful life “but also with the application still more exhaustive of aluminum, a very durable and lightweight material that will reduce the weight of our systems.”