STAMFORD, Conn.– ITT Inc. (NYSE: ITT) 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 percent 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 percent 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.