Alberto Bombassei, Chairman of Brembo: "The transaction will allow the Group to integrate brake pads in its two-wheeler product portfolio, strengthening its leadership in this strategic sector."

"This acquisition is in line with Brembo's new mission to become a respected solution provider, with a view to meeting the new sustainable mobility paradigms and offering the best driving experience".

Alberto Bombassei, Chairman of Brembo, is quoted as saying: "We are particularly glad to welcome SBS Friction to our Group. Despite the highly complex market context, Brembo has maintained its natural propensity to invest in innovation. This acquisition is an important step in our strategy: it enables us to integrate even more specific competences in a key sector to further strengthen our range of 'made-in-Brembo' solutions for the benefit of our customers."

Peter Eriksen Jensen, Chairman of SBS Group, stated: "Brembo has long been a trustworthy partner that knows the value of SBS Friction's technological knowhow and its strong niche position. We are pleased that SBS Friction will get a strong, long-term industrial owner who will support the company's continued development. The transaction is a good solution for SBS Group, SBS Friction, the employees and the city of Svendborg."

The transaction entails a consideration of 224m Danish Kroner, equal to approximately €30m, which will be paid using available cash, and is subject to the customary adjustment mechanisms as for similar transactions. Enterprise value is 300m Danish Kroner, equal to about €40.3m. The agreement is expected to be finalised in the first quarter of 2021.

SBS Friction's revenue declined by 11% in the first half of 2020 to DKK 74 million (around € 9.9m) due to COVID-19, while the profit margin (EBITDA recurring) increased by +2.8% points to 27.3% on the back of efficiency initiatives and postponement of certain activities. In the second half of 2020, the company's results have so far exceeded the level realised in the record year of 2019.