Thabo Sibutha and Nathi Nkomzwayo, the new owners of EBF Plastics, flank Benito Piccoli, former owner of the Johannesburg sheet extrusion company. The partners completed the purchase of the business earlier this year; Benito is to stay on for a period, managing production and assisting with staff training

NATHI Nkomzwayo and Thabo Sibutha are the new owners of EBF Plastics, the Meadowdale, Johannesburg, sheet extrusion business. The company, and the jobs of the 35 people employed, was literally saved at the eleventh hour – their offer was accepted just 11 days before it was due to go into liquidation.

Nathi, a chemical engineer (Natal University) and MBA graduate (Pretoria University’s Gordon Institute of Business Science) with extensive engineering and operations experience at executive level, and Thabo, who has spent his career to date in management positions, chiefly in the food and beverage sector, formed a partnership after a chance meeting last year during a business management course.

Through their investment wing, Bismuth Holdings, they began the search for businesses in the manufacturing space they could take over and develop. EBF fitted most of the criteria, but had been under stress and, in fact, on the point of failure.

By definition, many of the businesses offered on the market are distressed sales, often with substantial debts, and EBF was no exception. But such situations also present opportunities – if the purchase price is attractive to the buyers and structures for the necessary recovery can be managed well. EBF extrudes ABS, PP, PS and PET sheet. Its Omipa extruder is a versatile system and capable of producing eight different types of sheet.

Now Nathi and Thabo have taken the plunge and the recovery is underway. Benito Piccoli, who established EBF in 2004, is to remain with the company for a period to manage production and assist with staff training.

Not a job has been lost, meaning that there is continuity at the company and, among the staff, quite probably relief due to closure having been staved off – and one imagines determination to succeed this second time around.