Zimplow weighs potential acquisition
STAFF WRITER
On the back of its return to profitability, Zimplow Holdings is in discussions with various firms over a potential acquisition, Business Times can report.
The transaction could mark another phase in the repositioning of the diversified industrial group, which has spent the past year restructuring its operations and broadening its revenue base.
Company secretary Sharon Manangazira said discussions were underway over a potential acquisition.
“Zimplow is engaged in discussions relating to a potential acquisition transaction which, if successfully concluded, may have a material effect on the company’s share price. Shareholders will be provided with further details concerning the transaction in due course,” Manangazira said.
She did not disclose the identity of the target, transaction value, funding structure or expected completion timeline.
The discussions come as Zimplow rebuilds profitability and seeks to extract stronger earnings from a portfolio increasingly exposed to mining, exports and higher-margin aftermarket activities.
The shift has reduced the group’s reliance on the domestic agricultural equipment market, which has historically been a major driver of performance.
Agriculture remains an important part of Zimplow through Farmec and Mealie Brand, leaving earnings exposed to rainfall, crop performance and farmer liquidity.
The weakness in tobacco prices during April and May highlighted that exposure, with management reporting that reduced farmer incomes had delayed some equipment purchases.
Despite the challenges, Mealie Brand increased export implement volumes by 147% during the first five months of 2026, while export spare-parts volumes rose 128%.
For the five months to May, revenue increased 13% to US$14.26m, while gross margin improved to 27% from 24%.
The group reported a profit before tax of US$426,267, reversing a US$708,272 loss recorded in the corresponding period last year.
Cash stood at US$1.35m at the end of May, with management saying the net cash position had been generated internally.
The recovery provides a stronger platform for a potential acquisition, although it does not indicate the size of transaction Zimplow could undertake.
