TMD Friction has agreed to transfer its 50% share in braking company Hella Pagid to Hella, with the aftermarket supplier taking full control of the joint venture.
Founded in 2013, Hella Pagid sells brake components and accessories on the global automotive aftermarket. The parties have agreed not to disclose details of the purchase price.
Distribution of brake products under the Hella brand is already planned starting 1st October 2024. In the medium term, all key functions of Hella Pagid, including product management, will transfer to Hella, as will staff currently working in the joint venture.
Hella Pagid to be absorbed
The Hella Pagid portfolio will then be sold under the Hella brand in the independent aftermarket business while maintaining the same high product quality. TMD Friction will continue to manufacture brake pads for Hella as part of an ongoing business partner relationship. Brake pads make up one of the main product groups in Hella Pagid’s range, alongside brake discs and brake hydraulics.
“Over the past 10 years, Hella Pagid has developed into a leading full-service provider for brake systems,” saidStefan van Dalen, who as Managing Director Lifecycle Solutions at Hella is responsible for the spare parts business, among others.
“Brakes have therefore long since established themselves as key products in our independent aftermarket business. The Hella Pagid team has an exceptionally high level of product expertise, not least thanks to its many years of experience. With the planned complete takeover of Hella Pagid, we want to sell brake products under the strong Hella brand in the future and continuously expand the brake business moving forward.”
Pagid brand splits from Hella
Meanwhile, regaining full control over the Pagid brand will open up the opportunity for TMD to sell Pagid products in all regions worldwide and further develop the brand. This allows Pagid to re-join Textar as a global OE premium brand in the TMD Friction portfolio. TMD Friction will resume extended sales under the Pagid brand from 1st October 2024.
“The opportunity to offer the Pagid OE premium-quality product brand globally fits perfectly with our multi-brand strategy and provides us with utmost flexibility,” says Clement de Valon, Executive Vice President Independent Aftermarket at TMD Friction.
“Building on TMD Friction’s 145 years of braking technology expertise, combined with Pagid’s motorsport heritage, opens up countless opportunities for future brand development. This further supports our goal to serve all drivers across the globe better and to offer them the right product – no matter where in the world they live, which car they own, and what their budget constraints are.”
