HELLA has agreed to take over the remaining 50 percent shares of the joint venture Hella Pagid from TMD Friction. This agreement, effective from October 1, 2024, positions HELLA as the sole shareholder of Hella Pagid, enhancing its footprint in the global aftermarket for brake components.
Why It Matters
This acquisition underscores HELLA’s strategic expansion in the automotive parts sector, emphasizing the importance of brake systems in its product lineup. The deal allows HELLA to leverage Hella Pagid’s extensive expertise in brake systems, boosting its competitive edge in the independent spare parts business. For TMD Friction, this move facilitates a renewed focus on its Pagid brand, enabling broader global distribution and brand development.
Key Points
- HELLA acquires the 50% stake in Hella Pagid held by TMD Friction, becoming the sole owner.
- From October 1, 2024, HELLA will market brake products under its own brand, signifying a strategic focus on brakes in its independent spare parts business.
- TMD Friction will regain exclusive control over the Pagid brand, planning an expanded distribution from the same date.
- The agreement includes continued supply of brake pads from TMD Friction to HELLA, maintaining a business relationship between the two entities.
- This acquisition is a result of a decade-long successful partnership in Hella Pagid, which has established itself as a leading provider in brake systems.
Bottom Line
The full takeover of Hella Pagid by HELLA marks a pivotal shift in the automotive aftermarket landscape. It not only enhances HELLA’s product portfolio and market presence but also allows TMD Friction to strategically realign its brand focus. This deal is set to create new opportunities for both companies, reinforcing their positions as key players in the global automotive parts industry. The transition promises to maintain high product quality and expertise, benefiting customers worldwide.