Fras-le acquires Nakata and accelerates its presence in the aftermarket

Fras-le has expanded its operations in the spare parts market by announcing on December 17th, 2019 that it has acquired full control of Nakata Automotiva, headquartered in São Paulo, including its business units in the states of São Paulo and Minas Gerais. The company, considered a sector leader, manufactures and sells components for light and heavy vehicles and motorcycles, including a wide portfolio of products for suspension, steering, transmission, braking and engines.

The transaction, valued at BRL 457 million, covers all the operations and businesses. 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, yet to be scheduled, and the Administrative Council for Economic Defense (CADE, Portuguese acronym), as well as other antitrust authorities in other jurisdictions, as applicable. The company expects the negotiation to be concluded within the second quarter of 2020.  

According to Sergio L. de Carvalho, CEO of Fras-le and COO of Randon Companies' Auto Parts Division, this acquisition reflects an alignment with the company’s strategic growth plans. “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. It will benefit the company in such a way that it will create a competitive edge in terms of customers, who will now be served with a wider range of products”, he said.

Despite a greater focus on spare parts for the light vehicle line, Nakata also offers heavy vehicle options. Its main products, among others, include shock absorbers, tie rod ends and steering bars, CV joints, universal joints, pumps, axle components, light traction and steering systems. 

Jorge C. Schertel, Nakata CEO mentioned that “the Nakata Automotive team is honored to be united with one of the most important auto parts companies in Brazil. They are two leading and complementary companies that will produce relevant results for their employees, shareholders, customers and suppliers. With similar Values and Ethical Principles and the combination of best practices and solutions, the entire customer chain will benefit."

Along with Nakata is a recent portfolio of acquisitions and businesses geared towards the spare parts markets in Brazil and abroad. In 2018, Fras-le purchased Fremax, a traditional manufacturer of brake discs. In the same year, it assumed control of Jurid do Brasil, dedicated to the manufacture of brake pads. In 2012, it acquired Controil, a manufacturer of hydraulic brake system components.

Throughout its history of over 65 years, Fras-le has always kept an eye on the foreign market but recently it has intensified its globalization process. The biggest expansion came about in 2017, notably in the foreign market. The company secured important acquisitions and associations involving three companies from Argentina and Uruguay. In India, through a joint venture with ASK Automotive (P) Ltd., ASK Fras-le Friction was established to supply the markets of India, Bangladesh, Nepal and Sri Lanka. The manufacturing plant in China was also doubled, not to mention the establishment of a sales office and distribution center in Colombia.

Nakata Automotiva profile – For almost seven decades, the Nakata brand has been intimately tied to the Brazilian automotive industry, actively participating in the evolution and consolidation of the sector. Given the unique characteristics and growing needs for Independent Spares in the past 15 years, it has dedicated itself exclusively to this market, with complete lines and leading products in the suspension, steering and transmission segments, along with brake solutions and motorcycle spares. Through high performance products associated to a unique aftermarket service, Nakata is synonymous with quality and reliability. Through a strong network distribution, its products are available not only throughout the entire domestic market, but abroad, too. Committed to the aftermarket and focused on providing comfort and safety for its consumers, Nakata’s reason for existing lies in the innovation and excellence of its products and services.

Fras-le profile – Fras-le S/A is part of the Randon Companies since 1996. With manufacturing plants in Brazil, United States of America, China, Argentina, Uruguay and India, distribution centers in Argentina, Germany, United States of America and Colombia and commercial operations in Chile, Mexico, United Arab Emirates and South Africa, Fras-le offers a productive capacity and commercial structure able to rapidly and efficiently meet international demands. It has a portfolio with over 14,000 product references for several brands, with a line including brake pads and linings for heavy vehicles, and brake pads, linings and shoes for light vehicles. It also produces clutch facings, brake pads and linings for motorcycles, pads for aircraft, and pads and linings for tains and metro systems. Another line offers molded and woven brake linings, universal plates, discs and drums for brakes, products for the hydraulic brake segment, such as master, wheel and clutch cylinders, repair kits, brake and radiator fluid and filters, among other things. Besides Brazil, Fras-le currently trades its products in 126 countries.

About Randon Companies – With our 70-year history, Randon Companies are a global reference in transportation solutions, working in the trailer and semi-trailer, off-road vehicles, auto parts and financial services industries. With its companies Randon Implementos, Randon Veículos, Fras-le, Jost, Master, Suspensys, Suspensys WE/Castertech, Randon Consórcios, Banco Randon, and its respective controlled companies, the group has become a leader in several industries, relying on investments in technology, research, and development. Furthermore, it works in innovation via the Hercílio Randon Institute, and in social change via the Elisabetha Randon Institute. It is part of Corporate Governance Level 1 for B3, among some of Brazil’s leading private companies and, from its headquarters in Caxias do Sul, Rio Grande do Sul State, and its business units spread across the globe, it exports to over 100 countries on all the continents.

Photo: Bruna Coelho