HSBC Private Equity, the private equity arm of the international bank, has financed the €125m ($114m) acquisition of the industrial components business of Rütgers in Germany.

The purchase of business from the German chemicals and plastics company will enable HSBC Private Equity to expand TMD Friction, the car parts manufacturer in which it is a majority stakeholder. HSBC Private Equity led the €776m management buy-out of TMD Friction in August 2000.