Pamplona Capital Management exits TMD Friction

Diana Petrowicz
29 September 2011

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Pamplona Capital Management has sold automotive supplier TMD Friction to Tokyo-based Nisshinbo Hodings for €600m.

The sale price includes a debt structure worth €160m.

Originally Pamplona had plans to float TMD in autumn 2011 but opted for a trade sale due to a downturn in the stock market.

Previous funding
In 2009, Pamplona acquired TMD, which had gone into administration, for around €100m. Since then, TMD has managed to stabilise its business and increase its turnover by 20% and its EBITDA by 160%.

Previous owner Montagu bought the company in 2000 for €776m and exited in 2006.

Company
Founded in 1913, TMD manufactures brake friction materials for automotive and commercial vehicle applications. Its product portfolio comprises disc brake pads and drum brake linings for passenger cars and commercial vehicles together with brake pads for racing cars and friction materials for rail and industrial applications.

Leverkusen-based TMD Friction is also a supplier to the global aftermarket with its Textar, Pagid, Mintex, Don, Cobreq and Cosid brands. The firm has facilities in Germany and five other European countries, as well as the US, Brazil, Mexico, China, Japan and Malaysia.

It has increased its turnover by 20% since 2009 and generated a turnover of €637m last year. An EBITDA of €71m represents an increase of 160%. TMD employs approximately 4,800 people worldwide.

People
Martin Schwab is a partner at Pamplona Capital Partners.

Advisers
Equity – Allen & Overy, Hartmut Krause, Matthias Horn, Birgit Reese, Ellen Braun, Gernot Wagner, Gordon Milne; Vera Thiemann, Alexander Wüpper, Christoph Naumann, Carmen Candia, Camilla Kehler, Peter Banks, Frederic Pilorget (Legal).
Debt – Freshfields Bruckhaus Deringer, Rick van Aerssen (Legal).
Acquirer – Gleiss Lutz, Fred Wendt, Michael Burian, Ulrich Soltész, Michael Marquardt, Andreas Neun, Urszula Nartowska, Christian Mencke, Charlotte Beck, Rut Groneberg, Johann Wagner, Alexander Molle, Barbara Klüßendorf, Stefan Geiger, Fabian Kutz, Renata Noglik (Legal); Mori Hamada & Matsumoto, Atsushi Oishi, Yo Uraoka, Kenji Ito (Corporate finance); Herbert Smith, Gavin Davies, Gillian Fairfield, Bruno Basuyaux (Legal); Stibbe, Dirk Leermakers (Legal).