LUXEMBOURG, Sept. 26, 2011 /CNW/ - Combined business will become the world's largest automotive brake
friction manufacturer - TMD Friction Group SA ("TMD" or the "Company"),
the world's leading manufacturer of friction materials for automotive
and industrial applications, today announces its shareholders have
reached agreement with Nisshinbo Holdings Inc. ("NISH"), a Japanese
group listed on the Tokyo Stock Exchange, on the terms of a recommended
acquisition of the Company.
TMD has grown rapidly over the past three years, benefitting from strong
growth in fast growing regions such as China, Brazil and the
independent aftermarket. The Company is now well positioned having made
significant investment in capacity and product development as well as
through targeted acquisitions. For the year ended 31 December 2010, TMD
reported a 20 per cent increase in sales to EUR637 million with
proforma EBITDA up 160% to EUR71 million.
NISH has an established position as a global player in the areas of
brake, mechatronics, textiles and electronics. NISH's brake business is
operated globally by Nisshinbo Brake Inc. ("NISB") and its overseas
subsidiaries which include manufacturing facilities in Japan, South
Korea, USA, China, Thailand, and India.
The combination of TMD with NISB will create one of the world's largest
automotive brake friction manufacturers with clear technology
leadership and an extensive offering for passenger cars and commercial
vehicles. The combined companies will have revenues of over EUR1.0
billion and over 6,000 employees.
The transaction is expected to complete following competition authority
approval. Following completion, NISH will continue to operate TMD as an
independent, wholly owned subsidiary. TMD will continue to be led by
Derek Whitworth, CEO, with his management team. Koji Nishihara,
President of NISB and a NISH board member, will also join the Board of
TMD. A joint Global Management Team will also be established with
members from NISB and TMD.
Derek Whitworth, Chief Executive of TMD, said: "I am delighted to be
joining the Nisshinbo group of companies. This is a great opportunity
for TMD to continue our development with a strong and successful
partner. Their expertise, particularly in the markets where we are
growing fastest will be invaluable as we seek to accelerate our
expansion and continue to provide innovative and leading products to
"I would also like to thank Pamplona Capital Partners II, LP for helping
us at a particularly challenging time in the early part of 2009. They
have been a hugely supportive shareholder and partner for our
Koji Nishihara, President of NISB and a NISH board member, said: "TMD is
a leading global brake friction manufacturer with strong brand
recognition and established technology leadership dating back 100
years. The combination of NISB and TMD under the ownership of NISH
creates the largest, most capable, global automotive brake friction
manufacturer in the world.
"Together, we will have a strong presence in all major automotive
sectors with an extensive global customer base and minimal geographic
overlap. We see several opportunities to leverage our combined
technology, geographic knowledge and customer networks. I look forward
to working with Derek and his team in the years ahead."
More information about TMD Friction: http://www.tmdfriction.com
More information about Nisshinbo: http://www.nisshinbo.co.jp
SOURCE TMD Friction
For further information:
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