Automotive supplier Hella will take full control of brake firm Hella Pagid after partner TMD Friction agreed to sell its 50% stake.
The firm, a joint venture created 10 years ago between Hella and brake friction manufacturer TMD, sells brake components and accessories across the globe – mainly pads, disks and hydraulics.
This deal, which has yet to be finalised but is held together through a signed letter of intent, will see Hella distribute brake products under its own brand name, and TMD regain sole control of the Pagid brand, from next October.
Financial details have not been disclosed; TMD will continue to supply brake pads to Hella as part of a separate, ongoing deal.
Between completion and next October, Hella says it will transfer Hella Pagid employees to its payroll; no information on job losses have been disclosed.
All key functions of Hella Pagid, including product management, will be also transferred to Hella during this period.
“Over the past ten years, Hella Pagid has developed into a leading full-service provider for brake systems,” said Stefan van Dalen, managing director lifecycle solutions at HELLA.
“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.”
He added: “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.”
TMD says regaining full control over the Pagid brand will “open up the opportunity to sell Pagid products in all regions worldwide and further develop the brand”.
The move also allows Pagid to re-join Textar as a global OE premium brand in the TMD Friction portfolio.
“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,” said 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.”
Further details will follow.