Source: Fras-le announcement
CAXIAS DO SUL, Brazil – The acquisition of Nakata Automotive, which closed Sept. 1st, is the largest merger and acquisition in Fras-le’s history.
This union combines the experience of the two companies in the aftermarket as well as expanding the range of products offered.
The synergy built between the companies goes from the production of many parts and components, to the service and commercialization of parts for light and heavy-duty vehicles and for motorcycles.
Fras-le Net Revenue R$ 620m in First Half of 2020
The product ranges include parts for suspension, steering and transmission systems, besides complete brake solutions. Major items include shock absorbers, terminals and connecting and steering bars, pivot and suspension trays, homokinetic joints, cardan and differential shaft components.
According to Fras-le’s CEO, Sérgio L. Carvalho, the acquisition of Nakata consolidates the company’s strategic growth plans, adding to a recent portfolio of acquisitions and businesses aimed at the Brazilian aftermarket and export markets.
“This process is an important movement for the sector and reinforces the greatness of companies that, together, bring even greater competitive gain, Carvalho said. “In addition, it benefits the customer, who now has a greater diversity of products, since we add suspension, steering and powertrain items to the components for the braking system mix, significantly increasing support to the Brazilian aftermarket.”
“For us at Nakata it is, at the same time, a reason for pride but also a lot of responsibility. The union of these companies results in one of the three largest suppliers for the auto parts aftermarket in Brazil,” said Jorge C. Schertel, president and CEO of Nakata. “The combination of all this knowledge and skills in addition to a broad portfolio of products will result in a better and innovative solution for our customers and for a dynamic and constantly evolving market.”
Disclosed to the market December 17, 2019, the acquisition was approved by the Administrative Council for Economic Defense (CADE) July 3, 2020 and by Fras-le shareholders through an Extraordinary General Meeting held July 23 of this year.
The business involves all Nakata operations, both in São Paulo and Minas Gerais, which has more than 400 employees.
A global leader in friction materials and components for brake systems, Fras-le markets its products for automobiles, motorcycles, commercial vehicles, aviation, railway and industrial in more than 120 countries. In Brazil, Fras-le supplies original friction materials to 95 percent of heavy and semi-heavy vehicle manufacturers. The company is also a leader in the aftermarket through the brands Fras-le, Lonaflex, Fremax and Controil.