TMD Friction Group announced that its shareholders have reached agreement with Nisshinbo Holdings Inc. on the terms of a recommended acquisition of TMD. The company says the combination of TMD with NISB will create one of the world’s largest automotive brake friction manufacturers with an extensive offering for passenger cars and commercial vehicles.
The transaction, terms of which were not announced is expected to be completed following competition authority approval, after which NISH will continue to operate TMD as an independent, wholly owned subsidiary. TMD will continue to be led by Derek Whitworth, chief executive officer, with his management team.
“I am delighted to be joining the Nisshinbo group of companies,” Whitworth says. “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.”
Koji Nishihara, president of NISB and a NISH board member, will join the TMD board. A joint global management team also will be established with members from NISB and TMD. “TMD is a leading global brake friction manufacturer with strong brand recognition and established technology leadership dating back 100 years,” Nishihara says.
“The combination of NISB and TMD under the ownership of NISH creates the largest, most capable global automotive brake friction manufacturer in the world,” Nishihara says. “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.”