TMD Friction Acquired in Equity-backed Management Buy Out

On 3 April TMD Friction was bought out in an all equity acquisition led by its senior management team and Pamplona Capital Management, a London-based investment fund. According to a company statement, the move will safeguard approximately 3,800 jobs worldwide. Completion of the acquisition is expected by the end of April.

TMD Friction manufactures disc brake pads and drum brake linings for passenger cars and commercial vehicles, together with brake pads for racing cars, and friction materials for industrial and rail applications. TMD Friction supplies global automotive and commercial OEMs across a wide range of vehicle platforms. The company is also one of the largest suppliers to the global aftermarket with its Textar, Pagid, Mintex, Don, Cobreq, and Cosid brands. The company operates from locations across Europe, the US, Brazil, Mexico, China and Japan.

Commenting on the acquisition, Derek Whitworth, CEO of TMD Friction, said: “I’m delighted to be partnering with Pamplona who are highly supportive of TMD Friction and the long-term outlook for the group. Today marks the end of a difficult period of uncertainty. TMD Friction is now debt free, and with our financial constraints resolved I am confident that we can continue to build on our leading market position, as evidenced by recent platform wins with customers such as BMW, Mercedes-Benz, Opel, Porsche, and VW. I’d like to thank our staff, customers, and suppliers for their continued support during this challenging time for the company.”

Martin Schwab, Partner of Pamplona Capital Management, said: “TMD Friction is an exceptional business and we are delighted to be part of the long term future of the group. TMD is a global leader in the automotive sector and has good defensive qualities given that a large part of the business is focussed on the replacement parts market, which is less affected right now by the current economic climate. We are backing a great management team led by Derek Whitworth and are pleased to be able to maintain the independence of a technology leader in its field.”