PUZEY & Payne management have acquired the firm through a management buyout following the disposal of the car dealership unit by parent group Zimplow Holdings, the company has announced. Business Reporter
In a statement released last Friday, Zimplow company secretary Maxwell Chinorwadza said the disposal was effective from June 1 and would allow the company to streamline operations on the back of a subdued economy.
The development comes at a time when the company has been facing stiff competition from secondhand vehicle imports from Japan.
“Further, details with respect to this transaction will be made available in the next interim results of the company. The directors obtained an independent opinion from advisers that the terms of the transaction are fair and reasonable to the company’s shareholders,” Chinorwadza said.
Puzey & Payne motor vehicle units sales were subdued in 2012 compared to 2011 due to liquidity challenges that are prevailing in the economy.
Zimplow units include TPHL, whose subsidiaries are Northmec Zimbabwe, Farmec, Puzey & Payne and Barzem.
In the full-year ending December 2012, Zimplow posted a $1 million loss due to the restructuring and merger costs.
Group revenue stood at $35,6 million while operating profit was $1,78 million below figures achieved by Zimplow in 2011. The group attributed that to pressures experienced in spares margins and sales mix between local sales and export of Mealie Brand.
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The Mealie Brand in the full year period posted a 10% decline in total volumes while exports implements volumes were 13% high than 2011.
CT Bolts units in kilogrammes declined by 7% during the period under review.
Early this year Zimplow took over Tractive Power Holdings Limited after shareholders of both firms approved the acquisition that resulted in Zimplow being a majority shareholder in TPHL.
