Novus Holdings has acquired ITB Manufacturing. This acquisition forms part of the business strategy of Novus Holdings to diversify into related and new markets to boost profitability and increase cashflow through sourcing new revenue streams for the group.
In June 2017, the Competition Commission approved the proposed merger between the two entities and the merger has now come into effect.
‘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, Novus Holdings Group CEO.
ITB Manufacturing, currently with operations in KwaZulu-Natal and Gauteng, produces a wide range of flexible packaging solutions, servicing sectors such as FMCG products, automated packaging films for dry goods (both food and non-food), industrial bulk packaging for polymers and chemicals, retail check out 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 centred on long-lasting, collaborative relationships evident in its loyal customer base. Novus Holdings’ 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 both complement and fill the gap between the group’s current capabilities.
Novus Holdings, 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 also already recently added new capacity to its operation in KwaZulu-Natal to increase its extrusion and print production capabilities to further service its diverse customer base.
Tim Stewart, the MD of ITB Manufacturing, has 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 Holdings 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 Holdings.’
‘We are also excited that we can begin to work together for the benefit of both parties and towards achieving Novus Holdings’ overall growth strategy, as Novus continues to look to other industries for logical expansion and diversification initiatives,’ concluded Stewart.