BBVA acts as exclusive financial in to KUO in the sale of 100% of its automotive parts division to Fras-le

BBVA Mexico acted as exclusive financial advisor to KUO SAB de CV, a leading Mexican maker and seller of automotive parts, in the sale of 100% of its automotive parts division to Fras-le SA for approximately USD385 million.

Fras-le SA is a publicly traded Brazilian company, a subsidiary of Randoncorp, which specializes in the manufacture of components for braking systems and other automotive spare parts.  This transaction will expand its presence in Mexico and, through combined synergies, accelerate its entry into the North American market.  For KUO SAB de CV the deal bolsters its financial structure by allowing it to turn its focus to the businesses with the greatest growth potential, maintaining a portfolio analysis with dynamism and value.

KUO SAB de CV is a Mexican industrial conglomerate present in more than 70 countries and with more than 50 years in the market, a trajectory that has given it a diversified leadership in the consumer, chemical and automotive industries. It has more than 24,000 employees, all committed to value creation and sustainable development.

This transaction reinforces BBVA's position as Mexico’s leading investment bank (1), with a total of 112 M&A transactions advised in Mexico since 2012. It also confirms BBVA's unique ability to execute cross-border transactions; 8 of its last M&A transactions have been cross-border, giving it a firm position in the automotive aftermarket sector in Mexico.

BBVA is grateful to KUO SAB de CV. for entrusting to it the role of financial advisor in this important transaction.

(1) Source: Refinitiv,  June 2024.