Fras-le purchases brake linings business in the United States
The acquisition will increase the Company’s production capacity
in this line by approximately seven million pieces/ year.
Fras-le has informed the market, through a Relevant Fact, about the purchase of the brake linings business of Haldex Brake Products Corporation, headquartered in Prattville, State of Alabama (USA), through its subsidiary Fras-le North America Inc. The operation includes all tangible and intangible assets, except for the land and buildings. The price of the acquisition corresponds to US$ 4,0 million, which will be paid with long-term loans borrowed by Fras-le North America, in the United States.
One of the main benefits of the acquisition will be the expansion in our current production capacity of brake linings, which will increase by 26% or seven million pieces a year. The Agreement foresees that the management of the business will pass to the control of Fras-le North America by August 1st, 2008.