Brazilian auto parts producer Frasle Mobility said (July 8, 2024) it has agreed to buy Mexican auto spare parts distributor Dacomsa from Mexico’s Grupo Kuo S.A.B de C.V. for 2.1 billion reais ($389.5 million).
With the deal, Frasle Mobility, formerly known as Fras-le, said it would also acquire the Dacomsa-owned Kuo Motor and Fritec firms, as well as some tangible and intangibles assets related to those companies, according to a securities filing.
Frasle Mobility also expects to earn some 300 million reais with synergies to be generated from the deal – as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) – in a five-year period, a presentation by the firm showed.
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PSR Analysis. The acquisition is part of the company’s strategy of internationalizing its business in the spare parts sector, through product diversification and brand expansion in its portfolio. Frasle is already in North America, strongly in USA with agreement with Meritor and with Distribution center in Mexico. With the acquisition, Frasle will be able to penetrate in the Mexican distribution, strongly controlled by a small number of distributors. PSR
