Zimplow’s TPS readies for market

ZIMPLOW says the acquisition of a 49 percent stake in Barzem is close to conclusion as the new entity emerging from that transaction, Tractive Power Solutions (TPS), is already positioning itself on the market.
Zimplow is acquiring a 49 percent shareholding in Barzem, held by its partner Barloworld, at a discount in line with the remedies provided in Barzem’s shareholder agreement.
This follows Barzem’s exit from Caterpillar distributorship on September 30, 2022, due to “changes in strategic direction by both parties”.
After the termination of the dealership, Barzem was rebranded as TPS. In a trading update for the first quarter of 2023, Zimplow said it would conclude the acquisition in line with the provisions of the shareholders’ agreement.

“This development is set to propel the performance of the group’s new business, Tractive Power Solutions, which entity was set up to provide earthmoving and heavy equipment solutions to its clientele,” Zimplow said in the update.
“The launch of TPS in an already contested market was well received by our customers who the group served through Barzem. Although the group is yet to secure exclusive distribution via an internationally acclaimed Original Equipment Manufacturer (OEM), the expertise and technical competence in running an earth moving dealership has provided TPS and Zimplow the much-needed depth in providing a one-stop shop for earth moving equipment fleet owners.”
To date, Zimplow explained, the group has secured service level agreements and repair and maintenance contracts amongst various onsite solutions with major fleet operators in the country.
“Whilst the transition from CAT distributorship has not been easy, the group expects to have repositioned itself in the earth moving equipment sector by year end,” Zimplow added. The group expects the trading environment to continue to be challenging given the constraints on liquidity.
“Consequently, the group will follow through on its strategy and operational tactics to achieve business stability and value preservation as we navigate the rest of the year,” Zimplow said in the update.
“The continued firm mineral pricing and measures by the government to encourage retention of foreign currency by the mining sector o­ffered a boost to increased economic activity driven by this sector. In addition, the pace of infrastructure development projects has provided the group with an incentive to adequately position itself with major earth moving fleet owners through Tractive Power Solutions,” Zimplow added.
“Due to delays in receipts for most of our key customers in both agriculture and the logistics sectors, emanating from the constrained liquidity environment, the group has been behind prior year Q1 by eight percent. The group has a strong order book to support the recovery of performance in Q2 and Q3 given the projected trading environm