Fras-le S.A. recently 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 that is valued at approximately US $24 million.
Fras-le announced the pending acquisition earlier this month 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 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.