[caption id="attachment_5983" align="alignright" width="150" caption="The sale is subject to approval by the competition authority"]
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Japanese firm Nisshinbo Holdings has agreed to buy TMD Friction.
The friction materials manufacturer will continue to trade as TMD Friction, operating as an independent wholly owned subsidiary.
The combination of the two companies will create one of the world's largest brake friction materials manufacturers, with a projected revenue of £1 billion and employing over 6,000 people worldwide.
The transaction is expected to be completed following approval from the competition authority.
TMD has grown rapidly over the past three years, presenting a 20 percent increase in sales in 2010 up to €637 million and proforma EBITDA earnings up 160 percent to €71 million.
TMD Friction will continue to be led by Derek Whitworth along with his management team. NISH board member Koji Nishihara will join TMD's board of TMD.
TMD chief executive Derek Whitworth said: “I am delighted to be joining the Nisshinbo group of companies. This is a great opportunity for TMD to continue our development with a strong and successful partner.
"Their expertise, particularly in the markets where we are growing fastest will be invaluable as we seek to accelerate our expansion and continue to provide innovative and leading products to our customers.â€
Koji Nishihara said: “TMD is a leading global brake friction manufacturer with strong brand recognition and established technology leadership dating back 100 years. The combination of NISB and TMD under the ownership of NISH creates the largest, most capable global automotive brake friction manufacturer in the world."
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