Brick manufacturer and supplier Brikor has acquired a 40% shareholding in multiproduct road transportation services provider Zingaro Holdings for R50-million.
Zingaro primarily operates in South Africa and mainly services short to medium distance routes in Gauteng, North West, Mpumalanga and Limpopo, with a fleet of more than 100 specialised vehicles.
Zingaro also specialises in providing turnkey services for mine activities, such as loading, hauling, stockpile management and haul road maintenance by using a range of specialised trucks and earthmoving equipment. Its specialised vehicles include tipper, low-bed and flat-deck trucks, as well as various plant and mining equipment.
“Zingaro is well-positioned with substantial market share. There are also many synergies between Brikor and Zingaro and the Brikor board of directors believes it will ensure additional income and profit opportunities for the combined group.
“The company has shown exceptional growth of around 20% a year since 2013, with significant growth in revenue of 111% for the financial years 2016 to 2017. During the following financial year, revenue increased by 42.5%,” says Brikor CEO Garnett Parkin.
He adds that revenue growth is expected to stabilise at an increase of between 8% and 9% a year for the foreseeable future.
Brikor also has an option, until April 30, 2023, to buy the remaining 60% shareholding in Zingaro for R90-million in exchange for Brikor shares at an issue price of 15c each.