Tenneco is laying the groundwork for an initial public offering that could value the business at approximately $14bn, as owner Apollo Global Management explores exit options following a four-year holding period, according to a report by Bloomberg.
Apollo Global Management acquired Tenneco in 2022 in a deal valued at around $1.6bn in equity, with an enterprise value exceeding $7bn including debt.
The report cites unnamed people familiar with the process, as revealing that the automotive supplier has begun early engagement with regulators and investment banks ahead of a potential listing later this year. Preparatory work, including drafting a prospectus, is underway, although no formal filing has yet been submitted and timing remains subject to market conditions.
The IPO is currently viewed as the leading monetisation route for Apollo, though sources stressed that no final decision has been made and alternative options remain under consideration if capital markets become less favourable.
Tenneco, headquartered in Northville, Michigan, is one of the largest global automotive components manufacturers, with operations spanning powertrain systems, suspension and braking technologies, and aftermarket products. The company supplies both original equipment manufacturers and the replacement parts market.
The potential listing comes amid shifting industry dynamics in the US automotive sector, where policy changes reducing incentives for electric vehicles and easing emissions regulations have supported demand for internal combustion engine-related components. That trend has benefited traditional automakers and their suppliers, improving sentiment across the sector.
Financial performance has also strengthened under private ownership. Market participants familiar with the business say earnings before interest, taxes, depreciation and amortisation are expected to exceed $2bn this year, roughly double pre-acquisition levels, underpinning the implied IPO valuation.
Tenneco currently operates through three main divisions: its powertrain segment, a performance solutions business focused on braking and suspension systems, and its DRiV aftermarket platform, which includes well-known brands such as Monroe and Champion.
