Pinheiro Neto steers Nakata Automotiva’s buyout by Fras-le
Pinheiro Neto has represented autoparts manufacturer Nakata Automotiva on its buyout by Fras-le
The transaction, valued at 457 million reais ($85.8 million), covers all the operations and businesses of Nakata.
Fras-le manufactures friction materials and components for brake systems, marketing its products to more than 120 countries in the lines of automobiles, motorcycles, commercial vehicles, aviation, railway and industrial. The company has units in Brazil, the US, China, Argentina, Uruguay and India and has strategic distribution centers worldwide.
In Brazil, Fras-le supplies original friction materials to 95 per cent of heavy and semi-heavy vehicle manufacturers. The company is also a major player in the aftermarket through the brands Fras-le, Lonaflex, Fremax and Controil.
The conclusion of the acquisition has been approved by Brazil’s antitrust body CADE, with authorisation pending by antitrust authorities in other jurisdictions, as applicable.
The parties expect the negotiation to be concluded within the second quarter of 2020.
According to Fras-le’s CEO, Sérgio L. Carvalho, the acquisition of Nakata consolidates the company’s strategic growth plans, adding to a recent portfolio of acquisitions and businesses aimed at the Brazilian aftermarket and export markets.
“This process is an important movement for the sector and reinforces the greatness of companies that, together, bring even greater competitive gain,” Carvalho said. “In addition, it benefits the customer, who now has a greater diversity of products, since we add suspension, steering and powertrain items to the components for the braking system mix, significantly increasing support to the Brazilian aftermarket.”
“The union of these companies results in one of the three largest suppliers for the auto parts aftermarket in Brazil,” Jorge C. Schertel, president and CEO of Nakata, said.
“The combination of all this knowledge and skills in addition to a broad portfolio of products will result in a better and innovative solution for our customers and for a dynamic and constantly evolving market,” he added.
Pinheiro Neto’s team advising Nakata was led by partner Marcos Chaves Ladeira (pictured), with corporate associates Rodolfo F. Schreuders and André de Cezare Bertella, tax associate Mariana Monte Alegre de Paiva, environmental associate Paula Suzanna Amaral Melo and
