TMD Friction

• Leading friction materials supplier to the automotive industry (No. 1 in Europe and No. 2 worldwide)
• Sells brake pads for passenger and commercial vehicles under a number of brand names and private labels
• Technology leader in its field
• High proportion of replacement parts aftermarket sales
• Brake pads typically last for 2-3 years, with an average car requiring 4-5 sets during its life

Investment Thesis

• Occupies the most attractive sub-segments of the automotive supply market
• Non-discretionary (safety-critical), low cost and high-value product with high technology content
• Approximately two-thirds of sales are into the aftermarket
• European market leader both in terms of sales and technology
• Numerous avenues for growth, both geographically and into new product segments (rail, industrial)

Website

Company: http://www.tmdfriction.com/