Frasle Mobility, a Brazilian multinational company, a benchmark for providing solutions, products and services for the auto parts and automaker markets, has completed today the acquisition of the spare parts division of the Mexican group KUO, called KUO Refacciones, which will be renamed Dacomsa. The transaction is the largest ever made by the company, worth approximately US$ 360 million. With this move, Frasle Mobility will strengthen its leadership position in the three main markets for the automotive aftermarket sector in Latin America: Brazil, Mexico and Argentina.
The transaction includes the manufacturing operations of engine parts for the local brands Moresa and TF Victor, leaders in the supply of pistons and gaskets for engines, with two production plants in the State of Guanajuato, and the production operations of friction materials of Fritec brand, a leader in the supply of brake pads and brake shoes, with plants in Mexico City. In addition, other important brands in the automotive spare parts market in Mexico are joining the business, along with Dacomsa, which is the company responsible for selling the Moresa, TF Victor and Fritec brands, as well as a broad portfolio of undercar and powertrain products intended for local distributors.
“We are now entering a new phase, structuring the integration work and capturing the synergies planned for this project. We are also bringing together market-leading brands with successful track records. Our commitment is to leverage Dacomsa’s strengths so that we can continue to advance and strengthen our position, not only in the Mexican market, but in the global aftermarket as well,” explains Hemerson de Souza, Business, M&A and Investor Relations Director at Frasle Mobility.
The acquisition is part of the company's current expansion and growth cycle, increasing the company's international exposure to approximately 55% of its business. In addition to its local strength in Mexico, the proximity and relationship of the Business Operation with other relevant markets, such as the United States, played a significant role in the negotiation's progress.
The strategy is aimed at movements in important automotive markets, successful companies with strong brands, which allow strengthening competencies such as volume scale, access to sales channels and support through the cultural knowledge of each geography.
“It is a union that preserves the legacy of consistent and dedicated work, honoring and valuing all the efforts of Dacomsa's employees, management and partners network, now looking towards new horizons”, reinforces the President and CEO of Frasle Mobility and CEO of Randoncorp, Sérgio L. Carvalho.
“Frasle Mobility has production, sales and distribution units in Brazil, the United States, China, India, the United Kingdom, the Netherlands, Germany, Argentina, Uruguay, Chile, Colombia and Mexico, reaching more than 120 countries on five continents and offering more than 21 thousand part numbers in auto parts solutions for motion control, such as brakes, friction materials, suspension, steering and transmission for applications in light and heavy vehicles, motorcycles, railway cars and aircraft. The portfolio now also includes engine components, such as gaskets, pistons and bearings.
Main brands and units that are now part of the Frasle Mobility portfolio:
MORESA – With more than 70 years of experience in the Mexican aftermarket, it maintains leadership thanks to its knowledge and satisfaction of market and customer needs, in addition to innovation in production processes and updating of requirements for new technologies. Main products: pistons and bearings.
TF VICTOR – Leader in the sealing market in aspects such as sales, service, technology, distribution network, coverage and technical support. It offers a comprehensive solution to market demands, with a special focus on recent engines, which has allowed it to be the preferred brand of Mexican engine specialists and applicators for over 65 years. Main product: engine gaskets.
FRITEC – A brand with over 40 years in the Mexican market, known for its leadership and technology in friction materials. Main products: brake pads and brake shoes for cars and light commercial vehicles.
DACOMSA – Company responsible for marketing the Frictec, Moresa and TF Victor brands, as well as other important brands from a broad portfolio of undercar and powertrain products for aftermarket distributors. It is the benchmark for customer service in the country, with broad access to distribution and sales channels and the main agents in the sector.
