Castling on the brake market

Castling on the brake market

TMD Friction and Hella have agreed to transfer the 50 percent share in the brake joint venture Hella Pagid currently held by TMD Friction to Hella. Both companies have signed a corresponding declaration of intent. Hella would thus become the sole shareholder of Hella Pagid. Hella Pagid, a joint venture founded in 2013 between the automotive supplier Hella and the brake pad manufacturer TMD Friction, sells brake components and accessories on the global aftermarket. The parties have agreed not to disclose the terms of the purchase price.

“Hella Pagid has developed into a leading full-service provider for brake systems over the past ten years,” says Stefan van Dalen, who, as Managing Director of Lifecycle Solutions at Hella, is responsible for, among other things, the spare parts business. "Brakes have long since established themselves as essential key products in our independent spare parts business. With the planned full takeover of Hella Pagid, we want to sell brake products under the strong Hella brand in the future and continuously expand the brake business forward." Clement de Valon, Executive Vice President Independent Aftermarket at TMD Friction, said of the agreement: “The opportunity to offer the OE premium quality brand Pagid worldwide fits perfectly with our multi-brand strategy and offers us maximum flexibility.” Sales of braking products under the Hella brand are planned from October 1, 2024. The Hella Pagid portfolio will then be sold under the Hella brand in the independent spare parts business with consistently high product quality. Brake pads, one of the main product groups in Hella Pagid's range alongside brake discs and brake hydraulics, are manufactured and purchased by TMD Friction as part of an ongoing business partner relationship.

Regaining full control of the Pagid brand opens up the opportunity for TMD to distribute Pagid products in all regions worldwide and further develop the brand. This allows Pagid to rejoin Textar as a global OE premium brand in the TMD Friction portfolio. TMD Friction will resume expanded distribution under the Pagid brand on October 1, 2024.