The large ITB plant in Isithebe, on the KZN north coast, where extrusion, printing and bag-making are conducted; the company also operates a plant for courier envelope and other specialised bags in Gauteng
NOVUS Holdings, a leader in commercial print and manufacturing, has purchased ITB Manufacturing, one of South Africa’s leading plastic bag as well as tamper-evident and courier bags manufacturers.
The Competition Commission approved the proposed merger in June and it was announced on SENS on 19 September; the merger came into effect on 1 October.
This acquisition forms part of Novus Holdings’ business strategy to diversify into related and new markets to boost profitability and increase cashflow through sourcing new revenue streams for the group.
“Acquiring ITB Manufacturing will allow Novus Holdings to access revenue streams outside of the print media sector, which to date has been the source of the majority of our income. This investment in the packaging industry further entrenches us in the broader industrial and manufacturing sectors, and is complementary to our existing operations,” said Keith Vroon, CEO of Novus Holdings Group.
ITB, currently with operations in KwaZulu-Natal and Gauteng, produces a wide range of flexible packaging solutions, servicing customers in the FMCG sector with packaging films for dry goods (both food and non-food), industrial bulk packaging for polymers and chemicals, retail checkout bags, tamper-evident security bags, courier envelopes and general flexible plastic packaging.
ITB’s sales strategy is synergistic with that of Novus Holdings as it is centered on long-lasting, collaborative relationships evident in its loyal customer base. Novus’ subsidiaries and ITB aim to leverage off each other’s existing customer network with its combined offering and broader spectrum of products.
“ITB’s manufacturing capabilities are aligned with that of the Novus Holdings group of companies. Novus Holdings has packaging and label equipment that caters to the long and short-run market. ITB’s capabilities are a perfect fit, offering solutions that that both compliments and fills the gap between the Group’s current capabilities,” added Vroon.
Novus, in conjunction with ITB, plans to expand on the current ITB offering and gain organic growth in the flexible plastic packaging and wrap around label sectors. ITB has recently added new capacity to its operation at Isithebe in KZN to increase its extrusion and print production capabilities to further service its diverse customer base.
Tim Stewart, the MD of ITB, had the following to add about the merger: “Novus Holdings is a market leader in the printing and manufacturing industry, with a reputation for high quality and personalised service, which we uphold in our own dealings with clients. We are delighted to join forces with the Novus Holding group of companies and look forward to the opportunities to offer an expanded range of packaging solutions, with an improved geographical footprint and an enhanced range of products and services from synergies with the technical and production capabilities of Novus.
“We are also excited that we can begin to work together for the benefit of both parties and towards achieving Novus’ overall growth strategy, as Novus continues to look to other industries for logical expansion and diversification initiatives," added Stewart.