The Mexican conglomerate Grupo Kuo agreed to sell part of its auto parts business to the Brazilian Frasle Mobility for $390 million for three production plants for engine parts, parts for the braking system and powertrain parts in Mexico and a center of distribution, the two companies reported separately to the financial markets.
The assets that the Brazilian company is purchasing are part of the after-sales division of Grupo Kuo with the commercial brands Moresa, TF Victor and Fritec owned by Dacomsa (a subsidiary of Kuo).
The sales of the agreed assets recorded sales of around $260 million in 2023. The purchase-sale operation is subject to approvals from the corresponding authorities.
The sale of Dacomsa is a part of Kuo's auto parts business. In 2023, the entire auto parts division generated sales of $850 million, with an EBITDA of $96 million. The EBITDA margin was 11.3 percent in 2023, 124 basis points more than the 10.1 percent in 2022.