Michelin completes Sascar acquisition
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 9 June, has now been completed. The transaction has been approved by the Brazilian competition authority (CADE) and all other closing procedures were finalised on 29 August 2014.
Sascar has 870 employees and generated revenues of BRL 280 million (approximately £75 million) in 2013. As the leading digital fleet management and freight security company in Brazil, 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 tyre 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 (around £430 million), includes the purchase price of BRL 1,353 million (£363 million million) and BRL 247 million (£66 million) in debt.