Hella, a manufacturer of electronic components for the automotive industry, and TMD Friction, a leading global supplier of high-quality brake friction solutions have finalized an agreement regarding their Hella Pagid joint venture. This arrangement will result in Hella acquiring TMD Friction’s 50% stake, making it the sole owner of Hella Pagid. Established in 2013, Hella Pagid distributes brake components and accessories globally, and the financial details of this deal remain undisclosed.
Stefan van Dalen from Hella emphasizes the decade-long evolution of Hella Pagid into a top provider of brake systems, noting brakes’ crucial role in their aftermarket business. He points out the team’s extensive expertise, attributing it to years of experience. This acquisition marks Hella’s strategic initiative to bolster and expand its brake business under its well-regarded brand.
Clement de Valon of TMD Friction views this shift as consistent with TMD’s multi-brand strategy, leveraging its long-standing expertise in braking technology and Pagid’s motorsport legacy. This approach aims to serve a diverse range of global drivers, addressing varied needs and budget constraints.
By October 1, 2024, Hella intends to market brake products under its brand. This shift will involve relocating Hella Pagid’s key functions and staff to Hella, ensuring the continuity of high-quality product delivery. TMD Friction will continue producing brake pads for Hella, with brake pads remaining a primary product in Hella Pagid’s range.
This deal also grants TMD Friction full control over the Pagid brand, positioning it for worldwide sales and brand enhancement. Pagid will rejoin Textar as a global OE premium brand in TMD Friction’s portfolio, with expanded sales under the Pagid brand starting in October 2024. This development marks a strategic realignment in the automotive aftermarket, with both Hella and TMD Friction set to reinforce their global market positions.
DON’T MISS | SAIC-JSW JV Launch: New Era in India’s Green Mobility
