French tire-maker Michelin will pay $600 million to acquire Brazil-based fleet management and freight security company Sascar, reports the Global Post
“The innovative and dynamic company has developed a strong presence in the independent trucker and small truck fleet segment in Brazil, which underpins the country’s land transportation market,” Michelin said in a statement.
Michelin hopes the new acquisition will hasten the development of their lorry tire business in Brazil. Sascar earned its operating profit of 37 percent through the approximately $123 million it took in last year managing 190,000 lorries for 33,000 companies, said Michelin.
Before the deal can go through, Brazilian competition authorities must approve it. Michelin will also take on around $100 million in fleet debt.