Júlio Simões Group acquires Transportadora Grande ABC
Valor Econômico - 06/02/2008
The Julio Simões Group has just acquired the share control of Transportadora Grande ABC and its four other companies. The deal closed between the two groups involves a fleet of more than 700 trucks and increases the presence of Julio Simões in the competitive logistics market of the national car industry. Grande ABC has as its main customers some makers such as Toyota, Ford, Mercedes-Benz, besides manufacturers of auto parts. Notwithstanding it has been formalized, the final result of the acquisition will only be known in the end of the year, when the founder and holder of the share control of Grande ABC, Antonio Caetano, will decide whether he will continue in the company or not. According to the agreement, irrespective of Caetano's option, Grupo Julio Simões has guaranteed at least 60% of interest in Grande ABC. At first the purchasing group will contribute with capital for the renewal of the fleet and other assets, such as warehouses and stackers, leaving the payment of the share control for the end of the year. The sales forecast of Grande ABC for 2008 is R$ 250 million (US$ 153.4 million), a 35% growth compared to last year. As for the estimate total of the Julio Simões Group for 2008, including the results of its car and truck dealerships, is R$ 2.5 billion (US$ 1.53 billion), which will mean a growth of 43% compared to 2007. The initial planning foresees the reduction of the average age of the fleet of Grande ABC, currently at 3.5 years, whereas at Julio Simões it is two years. The goal of investment of Júlio Simões in the renewal of its entire fleet during the year of 2008 is R$ 410 million (US$ 251.5 million). Besides the carrier, the group of Grande ABC has four companies: Jecap, Selpa, SG Logística, and EADI. EADI, a subsidiary with branch offices in Recife (PE) and Taubaté (SP), works like a dry port. SG Logística, on its turn, is the result of a joint venture with the German group Schnellecke to operate inside the Volkswagen plants in the country. Selpa, headquartered in Vinhedo (SP), provides importation, exportation and storage services. The acquisitions of Grande ABC and Lubiani allow Simões to anticipate in one year the plan to sell R$ 3 billion (US$ 1.84 billion), previously projected for 2010. The car industry is now responsible for 22% of the results of the logistics part of the group, estimated in R$ 1.5 billion (US$ 920.2 million) this year.