SAO PAULO, Brazil (June 10, 2014) — Group Michelin has offered to buy Sascar Tecnologia Automotiva S/A, a Brazilian supplier of digital fleet management and freight security services, for $720 million, including the assumption of $110 million in debt.
The São Paulo-based company generated sales last year of $134 million with 870 employees and has grown about 16 percent annually the past three years, Michelin said. It reported a solid 37-percent EBITDA last year.
Michelin described Sasco as an “innovative and dynamic company” that has developed a strong presence in the independent trucker and small truck fleet segment in Brazil, where it services 33,000 fleets comprising 190,000 trucks.
“Michelin will benefit from the client base and human, technical and marketing skills built up by Sascar in the rapidly expanding telematics market for professional truck fleets and thereby accelerate the development of services for its customers worldwide,” said Michelin CEO Jean-Dominique Senard.
“This will help us strengthen an important area of growth for the group.”
The acquisition will enable Michelin to expand its service offering for truckers and to speed the growth of its truck tire business in Brazil, the company said, while offering Sascar access to its major customers in South America.
Among Sascar’s products is Sascar Fleet, a fleet monitoring service managed 24/7 via computer, tablet or smartphone. Sascar offers monitoring via satellite or cellular communications or a hybrid of both.
The acquisition is subject to approval from the Brazilian competition authorities.