Fras-le S.A. has acquired Freios Controil Ltda, a manufacturer of auto parts, brake components and automotive polymers, for $6 million, subject to adjustments. In addition, Fras-le will fully assume the company's debt—valued at approximately $24 million.
Fras-le will assume control and management of Freios Controil effective January 1. Both companies are located in Rio Grande do Sul, Brazil.
With the acquisition of Freios Controil, Fras-le reinforces its strategic goal of sustainable growth as a global company with earnings in 2013 forecasted at $601 million. Daniel Raul Randon, Fras-le's CEO and head of investor relations, said the acquisition fits perfectly with Fras-le’s desire to expand its brand presence inside and outside of Brazil. The transaction will also allow the company to smoothly integrate its distribution network with Freios Controil's.
Randon said the new company helps Fras-le diversify its portfolio of products, currently composed of over 9,000 items, including brake pads and lining sold in over 80 countries. New items added to Fras-le's product line include hydraulic cylinders, along with air filter hoses, intake manifold joints and a range of automotive rubber components that are part of the automotive polymers segment.
Fras-le brake pads and linings are available in the North American OE and aftermarket, as well as in more than 80 other countries. All of the company's friction products feature application-specific formulations. Fras-le’s North American product offering includes brake lining and shoes for medium- and heavy-duty trucks, OE brakes for heavy-duty and light vehicles manufactured in North America, and brake pads for light- and medium-duty vehicles in the North American aftermarket.Related content: Fras-Le Moves Corporate Office To Northville, Michigan