Novus Holdings-ITB Manufacturing merger takes effect
The 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,” says Keith Vroon, Novus Holdings Group CEO.
ITB Manufacturing, currently with operations in KwaZulu-Natal and Gauteng, produces a 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.
Expanding ITB offering
Novus Holdings’ subsidiaries and ITB aim to leverage off each other’s existing customer network with its combined offering and broader spectrum of products.
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.
“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," concludes Vroon.
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