Michelin’s acquisition of all outstanding shares in Brazilian digital fleet management and freight security firm Sascar Participações S.A. and its affiliated companies, which was first announced on June 9, has now been completed. The transaction has been approved by the Brazilian competition authority (CADE) and all other closing procedures were finalized on August 29.
Sascar has 870 employees and generated revenues of BRL 280 million (approximately $124 million) in 2013. Sascar manages 33,000 fleets and 190,000 trucks, and Michelin says the acquisition will enable it to expand its offering in the fleet management business and to speed the growth of its truck tire business in Brazil, while providing Sascar access to major customers in South America through Michelin’s distribution network.
The enterprise value of Sascar, which stands at BRL 1,600 million (approximately $712 million), includes the purchase price of BRL 1,353 million (approximately $602 million) and BRL 247 million (approximately $109 million) in debt.
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