TMD Friction Group SA, has announced its shareholders have reached agreement with Nisshinbo Holdings Inc. (NISH) 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 says. TMD is now well positioned having made significant investment in capacity and product development as well as through targeted acquisitions.
According to TMD, 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 transaction is expected to be completed following competition authority approval. Following completion, TMD says 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.
“I am delighted to be joining the Nisshinbo group of companies,” says Whitworth. “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 our customers.”
Nishihara adds, “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 (Whitworth) and his team in the years ahead.”
