Frasle Mobility Acquires Mexican Auto Market Leader

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Frasle Mobility, a Brazilian multinational in the automotive aftermarket, has made the largest acquisition in its history by purchasing the aftermarket operations of the Mexican group KUO. The deal, valued at approximately R$ 2.1 billion, will consolidate Frasle Mobility’s leadership in Latin America’s main automotive markets: Brazil, Mexico, and Argentina.

Key Highlights:

• Largest Acquisition in History: Frasle Mobility’s purchase of KUO Group’s aftermarket operations marks its most significant acquisition to date, valued at R$ 2.1 billion, pending final adjustments.
• Expansion in Mexico: This strategic move includes the acquisition of manufacturing and distribution assets, such as plants, logistics centers, and offices, enhancing Frasle’s presence in Mexico.
• Market Leadership: The acquisition solidifies Frasle Mobility’s leadership in the automotive aftermarket across Brazil, Mexico, and Argentina.
• Diverse Product Portfolio: The deal includes brands such as Moresa, TF Victor, and Fritec, leaders in engine parts and friction materials.

Frasle Mobility announced the acquisition of KUO Group’s aftermarket operations in Mexico on June 24th. The transaction, worth approximately R$ 2.1 billion, includes manufacturing plants, logistics centers, and offices, along with rights over linked product brands. This acquisition is subject to approval by relevant authorities and other conditions.

The deal encompasses the manufacturing operations of local brands Moresa and TF Victor, which lead the supply of pistons and gaskets for engines with production plants in Celaya, and Fritec, a leader in brake pads and linings for light vehicles with plants in Mexico City. Additionally, it includes Dacomsa, Mexico’s main spare parts distributor.

Market Insights: Hemerson de Souza, Investor Relations Director at Frasle Mobility, highlights the similarities between the Mexican market and the company’s established operations in Brazil. With approximately 55 million vehicles on the road, Mexico’s car fleet is the second largest in the Americas. Souza states, “With this move, we expand even more the company’s portfolio, creating a local replacement powerhouse along the lines of what we already have consolidated in Brazil.”

Anderson Pontalti, COO of Frasle Mobility, adds, “We are acquiring strong and recognized brands, which will make us leaders in the Mexican aftermarket market, a position we already occupy here in Brazil and also in Argentina.”

The acquisition aligns with Frasle Mobility’s current expansion cycle, increasing its international exposure to around 55% of its business. The proximity to the United States was a significant factor in the negotiation.

Respect for Local Markets: Sérgio L. Carvalho, President and CEO of Frasle Mobility and CEO of Randoncorp, emphasizes the company’s commitment to respecting the individualities and particularities of businesses in different geographies. “A fundamental premise in all the processes we conduct is respect for the individualities and particularities of businesses in each geography and sector of activity.”

Frasle Mobility operates in over 125 countries, offering more than 21,000 part numbers in auto parts solutions for motion control, including brakes, friction materials, suspension, steering, and transmission for light and heavy vehicles, motorcycles, railway cars, and aircraft.

Acquired Brands:

• Moresa: With over 70 years in the Mexican aftermarket, Moresa leads in the supply of pistons and bearings.
• TF Victor: A leader in engine gaskets for over 65 years, known for its comprehensive solutions and technical support.
• Fritec: Known for its friction material technology, supplying brake pads and shoes for over 40 years.
• Dacomsa: One of Mexico’s main distributors of spare parts, providing broad access to sales channels and key sector agents.