São Paulo – Brazilian company Fras-Le, part of the Randon Companies, announced last Tuesday (17) that it has acquired the company Nakata Automotiva, which manufactures and sells components for light and heavy vehicles and motorcycles, including products for suspension, steering, transmission, braking and engines.
Fras-Le is a Brazilian leader in the spare parts market and manufactures auto parts such as brake discs and pads. It is a great exporter and serves the market of the Middle East. The acquisition of Nakata, headquartered in São Paulo, as well as its units in the states of São Paulo and Minas Gerais, reinforces its expansion in the spare parts market.
According to information released by Fras-Le, the transaction, valued at BRL 457 million (USD 112 million) covers all Nataka’s operations. It announced that 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 and the defense bodies.
Fras-Le expects the negotiation to be concluded within H2 2020. “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,” Sergio L. de Carvalho, CEO of Fras-le and COO of Randon Companies’ Auto Parts Division was quoted as saying in a press release. Pictured above Nakata president and CEO Jorge Schertel (left) and Carvalho.
Despite focusing on spare parts for the light vehicle line, Nakata also offers heavy vehicle options. Its main products are shock absorbers, tie rod ends and steering bars, CV joints, universal joints, pumps, axle components, light traction, and steering systems.
Fras-Le has manufacturing plants in Brazil, United States, China, Argentina, Uruguay, and India, as well as distribution centers in Argentina, Germany, US and Colombia and commercial operations in Chile, Mexico, the United Arab Emirates, and South Africa. The company exports to more than 126 countries.
Translated by Guilherme Miranda
