ITT And Continental AG Sign 10-Year Strategic Aftermarket Agreement
STAMFORD, Conn.–(BUSINESS WIRE)–March 20, 2023– ITT Inc. (NYSE: ITT) today announced the company has signed a 10-year strategic agreement for the supply of aftermarket brake pads to Continental AG (Continental), a leading global automotive supplier. The agreement is expected to generate more than $1 billion in revenue over the term.
Under the agreement, ITT Friction Technologies (Friction) will provide exclusive aftermarket brake pads to Continental. Friction is a leading provider of original equipment brake pads for passenger cars and light commercial vehicles and aftermarket brake pads. It operates within the Motion Technologies segment that accounts for over 45% of total company revenues.
ITT and Continental have been partners in the automotive aftermarket for more than 45 years. Under the agreement, ITT will supply Continental’s premium brake pads brand, ATE, with sustainable copper-free pads and ceramic pads for enhanced performance. The contract begins on Jan. 1, 2024, immediately after the current agreement expires, and extends until Dec. 31, 2033.
The agreement is comprised of three parts:
- A contract to produce ATE premium line brake pads for cars and light commercial vehicles.
- A brand licensing agreement allowing Continental to market and sell highly trusted brake pads from Galfer, an ITT brand.
- An exclusive agreement for the production of other Galfer braking products for cars and light commercial vehicles.
Sales to Continental in 2022, including through an existing aftermarket agreement, were approximately 8% of total ITT revenue and 18% of total Motion Technologies revenue.
“Continental is an iconic name in the automotive space and we’re honored to extend our partnership with them. This agreement demonstrates the confidence Continental and car owners have in ITT’s ability to deliver quality products on time. We’re excited about the value created for ITT and Continental through this continued partnership,” said Luca Savi, ITT’s Chief Executive Officer and President.
About ITT
ITT is a diversified leading manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and energy markets. Building on its heritage of innovation, ITT partners with its customers to deliver enduring solutions to the key industries that underpin our modern way of life. ITT is headquartered in Stamford, Connecticut, with employees in more than 35 countries and sales in approximately 125 countries. For more information, visit www.itt.com.
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