Buyout (LBO, MBO, MBI) • Automotive

Montagu and ICG Acquire TMD Friction Holdings

On August 31, 2000, private equity firm Montagu and mezzanine finance firm ICG acquired automotive company TMD Friction Holdings for 766M EUR

Acquisition Context
  • This is Montagu’s 4th and ICG’s 2nd transaction in the Automotive sector.
  • This is Montagu’s 6th and ICG’s 23rd largest (disclosed) transaction.
  • This is Montagu’s 1st and ICG’s 3rd transaction in Germany.
Investment Fate
  • TMD Friction Holdings was sold to a strategic buyer in 2006.
  • TMD Friction Holdings was sold to a financial buyer in 2009.
  • TMD Friction Holdings was sold to a publicly-traded strategic buyer in 2011.

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M&A Deal Summary

Date August 31, 2000
Target TMD Friction Holdings
Sector Automotive
Buyer(s) Montagu
ICG
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 766M EUR

Target Company

TMD Friction Holdings

Leverkusen, Germany
TMD Friction is the manufacturer of friction material for brake pads and brake linings for the automotive industry.
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Buyers Overview 2

Buyer

Montagu

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1968
PE ASSETS 11.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

Montagu is an independent private equity firm focused on European management buyouts and growth capital transactions. The Firm seeks opportunities valued between €100 million and €1 billion. Sectors of interest include healthcare, medical products, financial services, software, IT, information services, and education. Montagu dates back to 1968 and is based in London.


Deal Context for Buyer #
Overall 44 of 119
Sector: Automotive 4 of 5
Type: Buyout (LBO, MBO, MBI) 40 of 60
Country: Germany 1 of 8
Year: 2000 2 of 4
Size (of disclosed) 6 of 32
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2000-07-01 Xtrac

Thatcham, United Kingdom

Xtrac engages in the design and manufacture of high-performance transmissions for the motorsport and automotive industry. It supplies most of the world’s top motorsport teams in both two and four-wheeled formulae across the globe, from MotoGP to Formula 1. Xtrac was founded in 1984 and is based in Thatcham, United Kingdom.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2000-09-01 STRIX Group

Ronaldsway, United Kingdom

Strix Group is a worldwide manufacturer of controls and cordless interfaces for kettles, jugs and a wide range of other water boiling appliances. STRIX Group was founded in 1951 and is based in Ronaldsway, United Kingdom.

Buy -
Buyer

ICG

London, United Kingdom

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 33.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Intermediate Capital Group (ICG) is a global mezzanine finance firm. IGC looks to provide junior capital to support a wide range of transactions, including buyouts, debt restructurings, and development financing. The Firm generally invests alongside financial sponsors and management teams in transactions valued from €250 million to €1 billion. ICG was formed in 1989 and is headquartered in London.


Deal Context for Buyer #
Overall 64 of 294
Sector: Automotive 2 of 6
Type: Buyout (LBO, MBO, MBI) 52 of 112
Country: Germany 3 of 24
Year: 2000 10 of 10
Size (of disclosed) 23 of 82
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2000-05-01 Marie Brizard & Roger International SAS

Bordeaux, France

Marie Brizard & Roger International SAS operates a distillery.

Sell €178M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2001-01-01 County Hotels

Buckinghamshire, United Kingdom

County Hotels owned 25 provincial hotels throughout England and Scotland. The hotels each had around 75 bedrooms and offered a range of leisure facilities, among them three golf courses. Notably, the company owned Burnham Beeches Hotel in Buckinghamshire, home to the England football team and England’s oldest hotel, the Royal Clarence Hotel in Exeter.

Sell -