FORQUETA CAXIAS DO SUL, Brazil – Fras-le has expanded its operations in the spare parts market with its acquisition of Nakata Automotiva of São Paulo. This includes its business units in the states of São Paulo and Minas Gerais.
The company, considered a sector leader, manufactures and sells components for light and heavy vehicles and motorcycles, including a wide portfolio of products for suspension, steering, transmission, braking and engines.
The transaction, valued at BRL 457 million, covers all the operations and businesses. Current management and the 416 employees will be kept on.
The conclusion of the acquisition is subject to approval at the Extraordinary General Assembly among Fras-le shareholders, yet to be scheduled, and the Administrative Council for Economic Defense (CADE, Portuguese acronym), as well as other antitrust authorities in other jurisdictions, as applicable. The company expects the negotiation to be concluded during the second quarter of 2020.
According to Sergio L. de Carvalho, CEO of Fras-le and COO of Randon Companies’ Auto Parts Division, this acquisition reflects an alignment with the company’s strategic growth plans.
“Through Nakata, Fras-le is adding suspension, steering and powertrain items to products from the braking system already part of the current portfolio, which can significantly increase its penetration into the domestic spare parts market. It will benefit the company in such a way that it will create a competitive edge in terms of customers, who will now be served with a wider range of products,” he said.
Despite a greater focus on spare parts for the light vehicle line, Nakata also offers heavy vehicle options. Its main products, among others, include shock absorbers, tie rod ends and steering bars, CV joints, universal joints, pumps, axle components, light traction and steering systems.
Jorge C. Schertel, Nakata CEO said, “the Nakata Automotive team is honored to be united with one of the most important auto parts companies in Brazil. They are two leading and complementary companies that will produce relevant results for their employees, shareholders, customers and suppliers. With similar Values and Ethical Principles and the combination of best practices and solutions, the entire customer chain will benefit.”