FRAS-LE S.A. ACQUIRES FREIOS CONTROIL IN BRAZIL
Acquisition increases and diversifies company's portfolio of components for brakes; obtains solutions for automotive polymers
Northville, Mich. – December 14, 2011 –– 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 US $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 on December 1, 2011 and will assume control and management of Freios Controil effective January 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 US $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 ofBrazil. 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.
Fras-le brake pads and linings are known for their quality and performance features and are available in the North American OE and aftermarket, as well as in more than 80 other countries. All of the company's friction products are comprised of application specific formulations, made from top-quality raw materials and asbestos-free. Fras-le’s North American product offering includes brake lining and shoes for medium- and heavy-duty trucks, OE brakes for heavy-duty and light vehicles manufactured in North America, and brake pads for light- and medium-duty vehicles in the North American aftermarket.
For more information about Fras-le, phone: (248) 735-4900, e-mail: fnai@fras-le.com, or visit: www.fras-le.com/nabrakes.
For Further Product/Service Information, Contact:
Steffanie Savine, Marketing & Sales Coordinator, (248) 735-4900 • steffanie.savine@fras-le.com
For Further PR Information, Contact:
Gary McCoy, PR Director, (847) 622-7228 • gmccoy@themarxgrp.com
About FRAS-LE
A global leader in brake technology and innovation, Fras-le is one of the largest friction materials manufacturers in the world. Fras-le, certified in ISO 9001, ISO 14000 and ISO TS 16949, also has its own state-of-the-art research & development center. Fras-le manufactures over 9,000 part numbers including heavy duty brake linings, light brake linings, brake pads, clutch facings, motorcycle brake shoes and pads, molded and woven brake linings, brake shoes for railway and subway and universal flat sheets. With plants in Brazil, China and the United States, distribution centers in Argentina and Europe, and commercial offices in the United States, Chile, Europe, Mexico, the United Arab Emirates, Africa and China, Fras-le keeps a well-structured team to serve its customers in more than 80 countries on all continents. More information about Fras-le can be found at www.fras-le.com/nabrakes.
About Controil
A supplier of brake cylinders and polymers and active in the spare parts market and automotive production in Latin America, mainly Brazil, Argentina and Mexico, Freios Controil was founded in 1957, having recorded gross earnings of US $64.5 million in 2010. Controil is located on an area of 430,000 sq. ft. and employs 550 people split between its two business units: brakes and polymers. More information about Controil can be found at http://www.controil.com.br/.
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