Nisshinbo buys Germany's TMD Friction from Pamplona Capital
London-based PE firm Pamplona Capital Management has exited its stake in German friction materials manufacturer TMD Friction to Japanese auto component maker Nisshinbo Holdings (NISH) for an undisclosed sum.
TMD manufactures friction materials for automotive and industrial applications, which a specialization on brakes, while Tokyo-based NISH makes auto brakes, textiles and electronic components. Following the acquisition, NISH will operate TMD as an independent, wholly owned subsidiary, the companies stated in a release, and TMD will continue to be led by CEO Derek Whitworth and his management team.
Koji Nishihara, NISH board member and president of its brakes division (NISB), will join TMD's board, and a joint global management team will also be established to oversee worldwide operations.
The German company attributed its growth over the past three years to sales in markets such as China and Brazil. It claimed a 20% boost in sales to EUR637 million ($843.3 million) in the 2010 fiscal year, with EBITDA also rising 160% to EUR71 million. The company was acquired by Pamplona out of insolvency in April 2009, which saved 3,800 jobs worldwide, AltAssets reported.
Pamplona's 2009 acquisition came eight years after Montagu Private Equity acquired the group in an EUR776 million (then $1.04 billion) leveraged buyout. Montagu's stake was acquired by a group of hedge funds in 2006 following a restructuring that saw TMD's debts diminish to EUR215 million from an unknown level. By 2009, the company was free of debt.
TMD currently has operations in Germany, the UK, and three other European countries, as well as in the US, Brazil, Mexico, China and Japan. It has 4,800 employees worldwide.
"TMD is a leading global brake friction manufacturer with strong brand recognition and established technology leadership dating back 100 years," Nishihara said in a release. "The combination of NISB and TMD under the ownership of NISH creates the largest, most capable, global automotive brake friction manufacturer in the world."
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