Randon announces €48.5M joint venture

Brazil-based OEM, Randon Companies, and steel specialist, Gerdau, have partnered to create a new heavy vehicle leasing business.

The formation of the new company, which will be headquartered in São Paulo, is now undergoing an approval process by the Administrative Council for Economic Defense (Brazilian antitrust agency).

Randon and Gerdau will maintain 50:50 partnership in the shares of the new business unit in addition to other sources of funding that may be accessed in the future.

The new business will have as its main service the rental of trucks and semi-trailers, seeking to deliver profitable and adequate solutions according to the demand of customers who act as carriers or cargo shippers.

The partnership reinforces the mission of Gerdau Next, Gerdau’s new business division, to diversify the business portfolio of the largest Brazilian steel producer in strategic segments such as mobility.

“The union with Randon Companies, a partnership of two organisations with enduring histories, that remain at the forefront of their segments, reflects our commitment to innovate and to seek to build an even more collaborative future,” said Gerdau CEO, Gustavo Werneck.

“We continually seek to develop quick and adequate solutions to the needs of our customers.”

Linked to Financial and Digital Services vertical businesses of Randon Companies, the partnership enhances the strategy of acting as a complete ecosystem of solutions for mobility.

“We combine the experience of two large Brazilian industrial companies with common visions for an innovative future, exploring the potential of new businesses,” said Randon Companies CEO, Sergio Carvalho.

“With this new company, we bring sustainable and appropriate solutions to potential customers, with great prospects for the transport and logistics sector.”

The trading of the new company’s services will be supported by Randon Implementos Distributor Network, with more than 80 points across the country.

In other news, Randon Companies achieved record revenues earlier this year which was driven by sales to foreign markets and solid business unit performance.

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