Last updated on April 25, 2014 at 1:22 EDT

TMD Friction and HELLA Plan Joint Venture for Original Equipment Quality Brake Components

September 4, 2012

LEVERKUSEN and LIPPSTADT, Germany, September 4, 2012 /PRNewswire/ –

TMD Friction and HELLA have today announced their intention to establish a new joint
venture. Under the brand name HELLA Pagid the partners intend to distribute brake
components for the worldwide automotive aftermarket. The jointly-owned enterprise, in
which each partner will have a 50-percent share, is to be established as an independent
sales company with its headquarters in Essen, Germany. Subject to the required approval by
the relevant competition authorities, the joint venture will start operations on January
1st, 2013.

The goal of TMD Friction and HELLA is to build up a leading global position in the
supply of brake components for all on-road vehicles. The joint venture will benefit from
the respective areas of expertise of the two partners. TMD Friction is a leading global
manufacturer of brake pads, which along with other components have been marketed under the
premium-quality brand Pagid. In future these products will, with the exception of the
British market, be distributed exclusively through the global HELLA trading organisation.
This cooperation will enable the Aftermarket specialist to extend its product range with
original equipment quality brake components under a strong brand and open up a further
high value segment in the replacement parts aftermarket.

“For both companies the new HELLA Pagid joint venture is an outstanding opportunity to
expand their global market position,” confirms Carsten Albrecht, Member of the HELLA
Management Board, Business Division Aftermarket & Special OE. “Pagid brake friction is
produced by TMD Friction, a group known for its excellent quality and cutting-edge
technology. This brand with a range of products completing the full braking system is a
natural fit within the HELLA product portfolio, perfectly meeting the high standards of
our customers and our own product philosophy.”

Since 2006 TMD Friction and HELLA have been cooperating in the wholesale business in
Scandinavia and the Baltics. In 2010 the two companies have begun to intensify their
cooperation, mutually reinforcing their respective positions on the Chinese aftermarket.

“As long-standing partners we have already achieved a great deal and have excellent
experiences together. This joint venture is the next logical step in our cooperation,”
states Josef Besting, Senior Vice President Aftermarket at TMD Friction. “With HELLA Pagid
we will in future be able to deliver our customers worldwide the best possible combination
of range, top quality and service.”

TMD Friction and HELLA will provide more information about the cooperation once the
joint venture has been approved by the competition authorities.

Press contact:

        Tobias Wolff
        pr people
        Tel: +49-221-534-1088-37
        e-mail: t.wolff@pr-people.de


Source: PR Newswire