Zimplow moves to acquire stake in Barzem

Zimplow Holdings Limited, has said it is on course to conclude the acquisition of 49 percent shareholding in Barzem from United Kingdom based firm, Barloworld.
Business Writer

One of the country’s agriculture implements manufacturer, Zimplow Holdings Limited, has said it is on course to conclude the acquisition of 49 percent shareholding in Barzem from United Kingdom based firm, Barloworld.

The decision is set to boost the performance of the group’s new business “Tractive Power Solutions (TPS)” that was set up to cater for the provision of earthmoving and heavy equipment solutions to its customers.

Zimplow says TPS which was launched during the course of the 2022 financial year, has been well accepted by the traditional clientele that the group has served through Barzem.

According to Zimplow the group is determined to safeguard shareholder value by acquiring Barloworld’s 49 percent shareholding in Barzem at a discount in line with the remedies provided” in Barzem’s shareholder agreement.

Zimplow Holdings Limited Chairman, Godfrey Manhambara, in the group’s financials to June 2023, highlighted that the Group is resetting to assert its status as the supplier of choice for agriculture, mining, infrastructure and automotive equipment solutions.

“The group is on course to conclude the acquisition of 49 percent shareholding in Barzem from Barloworld Equipment UK.

“It is also on course to recover from the gap caused by the termination of the caterpillar distribution agreement at end of September 2022 through the launch of two new business units namely Tractive Power Solutions and Valmec as well as the implementation of the Mealie Brand capacitation project,” said Manhambara.

This comes as the Zimplow on Friday, officially launched Valmec, a new division as part of its portfolio diversification strategy.

Valmec is a one stop shop housing merchandise brands like Valtra, Mosh, Sparex and Farmer Ziraat.

According to Zimplow, the launch of Valmec division, is targeted at supporting the entry level or emerging commercial farmer who had not been covered by Zimplow in the past.

Farmer Ziraat will cater for the supply of cost effective land preparation and wide range of tillage equipment from disc harrows, ploughs and rippers while Mosh will cater for the supply of seeding equipment, fertiliser application and crop protection equipment.

Sparex will offer after sales support or back up support, this aftermarket range focuses not only on the Valtra (Tractor brand) but will also focus on well-known tractor brands like case , Landini , Massey Ferguson , John Deere and New Holland.

Zimplow group chief executive officer, Vimbayi Nyakudya, said the launch of the Valmec Division was meant to ensure that clientele receives the necessary range of implements with a good pricing position, making sure that the farmer receives the best customer experience.

“In terms of strategy we want to be a one stop shop, we want our customers to have greatest convenience when they come to buy equipment. We are answering to the government call of leaving no one and no place behind so we are becoming inclusive, thus establishing a one stop shop.

“We are also following through the mandate of the Ministry of Agriculture to mechanise every farmer because the farmer is at the centre of what we do, so we are going to look at more ways to capacitate the farmer,” said Nyakudya.

In terms of performance in the half year period to June 2023, Zimplow recorded a 77 percent growth in revenue to $52 billion attributable mainly notable growth in farming implements sales, while profit remained flat compared to the prior year.

Mealie brand implements sales contributed 88 percent to the total revenue in the period under review.

Implements sold in the local market were 69 percent ahead of prior year whilst exports were depressed by 56 percent below prior year mainly due to the slow uptake.-ebusinessweekly