UPDATE 2-Michelin to buy Sascar, tapping growth in Brazil truck market
(Recasts, add details, financial advisers, GP Investments' return, share performance)
By Alexandre Boksenbaum-Granier and Guillermo Parra-Bernal
PARIS/SAO PAULO, June 9 (Reuters) - Michelin & Cie agreed on Monday to buy Brazilian digital truck-fleet management company Sascar Participações SA for 440 million euros ($600 million) to tap into robust growth in the South American nation's truck industry.
Michelin will assume Sascar's debt of about 80 million euros, the French company said in a presentation. The deal is subject to the approval of Brazilian authorities.
The agreement comes three years after GP Investments Ltd, the largest Latin American private-equity firm, took control of Sascar, betting that car insurers, logistics firms and security risk managers would boost demand for monitoring services.
Sascar earned 280 million reais ($126 million) in revenue last year, with earnings before interest, taxes, depreciation and amortization accounting for 37 percent of that and sales up 16 percent.
Michelin, Europe's largest tire maker is expanding across emerging markets, where demand for vehicles and auto-related services should rise in coming years.
"Michelin will benefit from the client base and human, technical and marketing skills built up by Sascar in the fast-growing telematics market for professional truck fleets," Jean-Dominique Senard, Michelin's chief executive officer, said in a statement.
Sascar is Brazil's No. 1 fleet management firm with a 23 percent market share. Fleet management and monitoring is a fast-growing market in Brazil, where only 4 percent of vehicles are tracked. The industry is expected to grow an annual 15 percent over the next four years. Continuación...