Fras-le S.A. announced the acquisition of Freios Controil Ltda, a manufacturer of automotive parts, brake components and automotive polymers for $6 million subject to adjustments. In addition, Fras-le will fully assume Freios Controil’s debt that is valued at about $24 million and will assume control and management of the company effective Jan. 1, 2012. Both companies are located in Rio Grande do Sul, Brazil.
Fras-le says the acquisition 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 chief executive officer and head of investor relations, says the acquisition fits perfectly with the company’s desire to expand its brand presence inside and outside of Brazil and also allow the company to smoothly integrate its distribution network with Freios Controil’s.
Randon says the new company helps Fras-le diversify its portfolio of products, currently composed of more than 9,000 items, including brake pads and lining 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.