HELLA and TMD Friction agree on complete takeover by HELLA
HELLA to acquire the 50 percent shares currently held by TMD Friction in the joint venture Hella Pagid
From 1st October 2024, HELLA to begin distributing brake products under the HELLA brand
TMD Friction to regain sole control of the Pagid brand and to expand sales of brake products under this brand from 1st October 2024
TMD Friction to continue to supply brake pads to HELLA
TMD Friction and HELLA have agreed to transfer the 50 percent share currently held by TMD Friction in the brake joint venture Hella Pagid to HELLA. The two companies signed a letter of intent. HELLA would thus become the sole shareholder of Hella Pagid. Founded in 2013, Hella Pagid, a joint venture between automotive supplier HELLA and brake friction manufacturer TMD Friction, sells brake components and accessories on the global automotive aftermarket. The parties have agreed not to disclose details of the purchase price.
"Over the past ten years, Hella Pagid has developed into a leading full-service provider for brake systems," says Stefan van Dalen, who as Managing Director Lifecycle Solutions at HELLA is responsible for the spare parts business, among others. "Brakes have therefore long since established themselves as key products in our independent aftermarket business. The Hella Pagid team has an exceptionally high level of product expertise, not least thanks to its many years of experience. With the planned complete takeover of Hella Pagid, we want to sell brake products under the strong HELLA brand in the future and continuously expand the brake business moving forward."
“The opportunity to offer the Pagid OE premium-quality product brand globally fits perfectly with our multi-brand strategy and provides us with utmost flexibility,” says Clement de Valon, Executive Vice President Independent Aftermarket at TMD Friction. “Building on TMD Friction’s 145 years of braking technology expertise, combined with Pagid’s motorsport heritage, opens up countless opportunities for future brand development. This further supports our goal to serve all drivers across the globe better and to offer them the right product – no matter where in the world they live, which car they own, and what their budget constraints are.”
Distribution of brake products under the HELLA brand is already planned starting 1st October 2024. In the medium term, current plans additionally envisage transferring all key functions of Hella Pagid, including product management, to HELLA. The employees would also to be taken over by HELLA. The Hella Pagid portfolio will then be sold under the HELLA brand in the independent aftermarket business while maintaining the same high product quality. TMD Friction will continue to manufacture brake pads for HELLA as part of an ongoing business partner relationship. Brake pads make up one of the main product groups in Hella Pagid's range, alongside brake discs and brake hydraulics.
Regaining full control over the Pagid brand will open up the opportunity for TMD to sell Pagid products in all regions worldwide and further develop the brand. This allows Pagid to re-join Textar as a global OE premium brand in the TMD Friction portfolio. TMD Friction will resume extended sales under the Pagid brand from 1st October 2024.