TMD Friction gains new investor for future growth

Automotive brake friction solutions specialist TMD Friction has confirmed its sale to German private equity investor Aequita. The transaction will likely be completed in the fourth quarter of this year, subject to approval by the relevant authorities and the fulfilment of other customary implementation conditions.

TMD Friction’s leadership team has been “thoroughly involved” in the acquisition process throughout and will do “everything required to ensure a smooth transition” of the business from Nisshinbo Holdings Inc. to Aequita. Alongside its automotive suppliers the IFA Group (Germany), the Signata Group, the Meteor Group and the Willi Elbe Group, Aequita’s automotive division records sales of more than two billion euros.

Deal at exactly the right time

The automotive industry is changing at a tremendous pace, which poses enormous challenges for all. “This deal comes at exactly the right time for TMD, and we could have no better partner than Aequita,” says David Baines, chief executive officer of TMD Friction. “It provides us with the best opportunity to run our business independently while strengthening our competitiveness, further driving our own ongoing transformation, and expanding our position as the trusted supplier of brake friction solutions to a diversified portfolio of leading OEMs and tier one suppliers, and the international independent aftermarket.

“Aequita’s investment is excellent news for TMD because they are far more than just a financial investor. The team at Aequita represents the perfect partner to help us build a much more robust and profitable company, which in turn opens the strong prospect for future growth.”

“TMD is a tremendous company and a great addition to our automotive division, adds Christoph Himmel, managing partner of Aequita. “With more than 135 years in the brake friction industry and its strong R&D know-how, TMD has established itself as the global partner of choice for its blue-chip customer base – strong fundamentals which we will build on.

“We believe that TMD offers significant growth potential in both, the OEM as well as the independent aftermarket. Together with the company’s great management team and employees, we will aim at materialising on these potentials.”