NORTHVILLE, Mich. Fras-le S.A. has acquired Freios Controil Ltda., a manufacturer of auto parts, brake components and automotive polymers. The value of the deal is set at $6 million, subject to adjustments. In addition, Fras-le will fully assume the company’s debt, which is valued at approximately $24 million.
Fras-le announced the pending acquisition on Dec. 1, 2011 and will assume control and management of Freios Controil effective Jan. 1, 2012. 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 the company’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 acquisition helps Fras-le diversify its portfolio of products, which currently features more than 9,000 items, including brake pads and linings sold in more than 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 are comprised of application-specific formulations, made from top-quality raw materials and asbestos-free, according to the company. 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.