Manheim Announces Acquisition

Manheim Announces Pacto São Paulo Acquisition

American company expands its presence in Brazil, developing commercial partnerships with six other auction companies to invest in the local marketplace  
 
As part of its long-term strategy to provide greater access to its services, Manheim, the largest global vehicle remarketing company, has announced the acquisition of Pacto São Paulo, with heavy investment in technology set to update the auction market in Brazil. The auction centre, located approximately 250 km from the São Paulo Metropolitan Region in the city of Ibaté, began operations as Manheim on July 3rd with CEO Daniel Nunes Romero heading up the new venture.

Manheim, the largest global vehicle remarketing company, has announced the acquisition of Pacto São Paulo

Besides the acquisition of Pacto São Paulo, Manheim is part of a commercial and technological partnership with Pacto North and Northeast and Leilomaster. In the coming years, Manheim technology will be implemented into local businesses, meaning they will use the same level of facilities as Manheim’s existing auction centre in Guarulhos and its newest auction in Ibaté. Manheim will work with six additional auction centres as part of the partnership, in order to boost the logistics and support networks in Brazil. Manaus, Belém, Fortaleza, Goiânia, Brasília and Salvador will be opened in August 2017.
 
Daniel Romero explains that making the sales clearer is the main goal of this acquisition. "Brazil is one of the only countries with a particular regulation in the auction sector, but we are way below the USA and Europe on sales of used cars, with just eight per cent of them made through auction. This is due to a lack of information provided, and we are set to change that by combining our local expertise with Manheim technology. “  
 
The vehicle inspection process developed by Manheim in Brazil will be introduced to Pacto, bringing new technology to Brazil’s vehicle remarketing sector and expanding the use of 360-degree imagery in the market. This system forms part of a rigorous inspection process with photos, vehicle details, demonstration of damages and extensive information to assist the purchase decision.
 
Romero has a strong name in the Brazilian auction market, with more than 14 years’ experience at Pacto North and Northeast. He will work alongside Marcelo Valland, COO and official auctioneer of Manheim, who has more than 20 years’ experience in the industry. The partners will also work together on Leilomaster, an auction company from Goiânia state.
 
Extensive knowledge of local markets led Manheim to choose the executives who would lead the business expansion in Brazil. "We looked for a partner who knew the local culture and was ready to transform the whole local market, applying our technologies and services to physical and online auctions, which represent 55 per cent of the sales here," says Nuno Castel-Branco, international business director from Cox Automotive, the parent company of the Manheim brand worldwide.