HISTORY

Over one hundred years
of sustainable business growth

We at Barloworld celebrate a proud heritage of over 100 years of success – 100 years of doing things differently with the prospect of even greater triumphs in the years ahead. From humble beginnings in Durban, South Africa, in 1902, Barloworld today is a global player and the market leader in virtually every sphere in which we operate. This is a wonderful heritage from which to strike out in new directions. Like people, companies that live for a century have something special within them. In our case, it is encapsulated in a single word: durability. We are a company that endures. We endure because we are able to adapt and change to meet the challenges of our changing environment. We know we face an increasingly turbulent and uncertain world. We stand ready to meet every challenge that confronts us. We are ready and proud to make our contribution to shaping a better future. We look forward to our next century.

Here's a brief look at highlights of our past:

Major Ernest (Billy) Barlow forms Thomas Barlow Sons in Durban, South Africa, an independent company based on the family business of the same name in England. Initially the company sells woollen goods, including blankets and coats, but within five years Billy Barlow expands to engineering components.

This is a period of growth and consolidation. In 1920, Billy Barlow opens an office in Johannesburg and in 1927 his eldest son, Charles Sydney, better known as Punch, joins the company. Punch Barlow quickly establishes himself by selling the first Caterpillar tractor. In the same year Barlow becomes the official sales and service dealer for Caterpillar in South Africa. Two years later Barlow acquires the forklift dealership.

Barlow shares are traded on the Johannesburg Stock Exchange for the first time. The opening price is seven shilling and sixpence per share.

Barlow enters the motor business by acquiring Ford's Nagington Motor dealership.

Barlow expands rapidly into many fields, including motor vehicle retailing, steel and building materials handling equipment, consumer electronics and steel manufacturing and selling. Although based mainly in South Africa, Barlow also acquires trading interests in the UK, Zimbabwe, Botswana and Namibia. In 1969 Barlow lists its shares on the London Stock Exchange.

Barlow Rand is formed with the acquisition of Rand Mines Limited, adding extensive mining and property interests to the company. Barlow Rand expands, adding cement, lime, stainless steel, televisions, paint and additional motor franchises to the mix. Although still largely based in South Africa, Barlow Rand's reputation grows as a world-class company. In South Africa it is the dominant player in many sectors of the economy with interests in everything from food to mining.

Punch Barlow dies. The company moves into the USA following the acquisition of Wrenn Brothers (later Wrenn Brungart).

Barlow Rand continues its path of growth through diversification into information technology, electrical engineering and textiles. The company's international reputation increases and Barlow Rand manages brands such as IBM and Merck in South Africa.

The acquisition of J Bibby & Sons PLC in the UK provides a major springboard to further international expansion. Bibby includes scientific products (Bibby Sterilin).

This proves to be a peak year for Barlow Rand with profits of R1 billion and almost 240 000 employees. The early 1990s is a time of expansion in Europe with the acquisition of Lamson in Belgium, Finanzauto in Spain and STET in Portugal.

During this period of political transition in South Africa, Barlow Rand plays a major part in helping the peaceful transition to democracy. Its sheer size gives it a unique position and role in bringing different political parties together and in building bridges as in, for example, assisting in the management of the 1994 elections. In the same way that South Africa is changing to face the future, Barlow Rand also moves forward.

The company unbundles non-core businesses during 1993/94 and a more focused and streamlined Barlow Limited is born.

This is a time of consolidation and investment. The company continues to expand its global reach with the acquisition of Lanes Limited and Taubmanns in Australia. New challenges are taken on with the distributorship of the Perkins brand in southern Africa and the Caterpillar brand in Siberia.

Tony Phillips appointed as Chief Executive Officer of Barlow. Value Based Management (VBM) initiated to drive strategic decision-making as well deliver shareholder value, with cash flow return on investment (CFROI®) as a financial metric. The company focuses on extension of the geographic spread of own brands internationally, expansion of the geographic footprint and range of international brands represented around the world and exiting non-core and underperforming business segments. VBM demands firm action on businesses that either do not have the potential to create sustainable value within the organisation, or cannot be expanded to grow the contribution they make. The non-core holding in Federated Timbers and a portion of Comparex shareholding are sold. Caterpillar operations are established in Siberia, and Ditch Witch franchise in Georgia purchased.

The company changes its name to Barloworld with a renewed focus on core strengths and expanding its global reach. The renaming results in the introduction of a modern uniform corporate identity and the implementation of a global branding initiative. An investment in Freightliner dealerships in the US is initiated with the purchase of Bartons Freightliner as part of our strategy to seek new ranges of products in areas where we already operate. 26.3% of Avis is South Africa is purchased, and the remainder of the Comparex shareholding disposed. 8% of the issued share capital is repurchased in a share buyback scheme.

VBM continues to drive the fortunes of the group, and our real cost of capital target of 8% CFROI® is exceeded. The company continues to expand its global reach with the Sterling Freightliner dealership in the US, three motor dealerships in Australia, a laboratory company (Protean) based in the UK, and a cement business (Portland Holdings) in Zimbabwe. We also launch a new business unit called Barloworld Logistics. Customer relationships move onto a new level with the formalizing of Smart Partnerships™, where our combination of financial strength, skills, products and services creates a unique value adding package for our customers which our competitors struggle to match.

Barloworld celebrates its centenary year and looks forward to the challenges of our own second century. Our medium term goal of 2*4*4 is set at the end of the year – doubling the value of the company for all stakeholders in four years. Disposals include PPC’s stakes in Natal Portland Cement and Ash Resources, our UK Coatings business, the Robor Stewarts & Lloyds steel distribution outlets, our half share of steel trading company Stemcor (South Africa) and our Mitsubishi motor dealerships in Australia. Our relationship with Caterpillar celebrates it 75th anniversary.

The Northwest Arkansas and Texarkana Freightliner truck dealerships in the US are acquired. Six motor dealerships are disposed of, and the sale of Henry Cooke in the UK marks the complete exit from the specialty paper business. Major Black Economic Empowerment deals include the formation of a 50:50 joint venture to distribute DaimlerChrysler products in the greater Durban metropolitan area. We have also commenced the sale of Afripack, PPC’s paper sack manufacturing business, to a BEE investment consortium and the Afripack management. These high profile BEE equity deals join our established BEE structures which include Sizwe Paints (70% BEE/30% Barloworld-owned architectural paint manufacturer based in Cape Town) and Shosholoza Steel Supplies (Pty) Limited.

Barloworld establishes a formal Black Economic Empowerment policy. The doubling of our Caterpillar dealership territory in Siberia in partnership with Wagner results in an enlarged dealer territory of 9.9 million square kilometers – an area larger than the USA. Acquisitions include the balance of the shares which we did not already own in Avis Southern Africa, International Colourant Corporation (ICC) and the Hyster dealership in the Netherlands.

The Hyster dealership in Northern Ireland, Hamilton Brush and Budget franchise in Sweden are acquired. PPC announces a 1 million ton expansion in cement capacity to meet rapidly growing demand in South Africa.

The Avis and Budget franchises in Denmark acquired to consolidate the Scandinavian group of countries. After a strategic review process, the Steel Tube Division and the US and UK Handling leasing finance books are sold. The 2x4x4 target is achieved – the doubling of the value of the business for al stakeholders in the four years to September 2006. A new target of doubling again by 2010 is announced.

PPC unbundled. Coatings unbundled and listed on the JSE as Freeworld coatings Ltd. Tony Phillips stands down as CEO and Clive Thomson, formerly Finance Director, takes over as CEO.

June
Barloworld announces its broad-based BEE transaction which included all South African employees, a number of Community Service Groups, an Educational Trust and Strategic Black Partners. The transaction achieved effective 29% empowerment of SA operations

September
The Power business was segmented from the Barloworld Equipment as a separate business unit with dedicated focus.

November
The Leadership Development Centre (LDC) was launched at Barlow Park, Sandton, to facilitate and co-ordinate professional development programmes that enhance the ability of Barloworld employees.

October
The Centre of Technical Learning, officially opened on Barloworld Equipment’s Isando campus by Jim Owens, Chairman and CEO of Caterpillar Inc, and Membathisi Mdladlana, South African Minister of Labour, to provide the sustainable technical skills to deliver on its solutions-based value proposition to customers.

Barloworld disposes of its Scandinavian car rental operations.

Barloworld reached agreement to acquire Wagner Equipment’s 50% shareholding in our Russian Caterpillar equipment joint venture, known as Vostochnaya Technica (VT).

The Logistics division was integrated into the Automotive division from 1 May 2011.

This page was updated on 9 June, 2011

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HISTORY

Over one hundred years of sustainable business growth

Over one hundred years
of sustainable business growth