In June, the Competition Commission South Africa approved the proposed merger between the two companies, which has recently come into effect. Novus Holdings operates in the commercial print and manufacturing industries while ITB Manufacturing manufactures and supplies flexible plastic packaging solutions.
The acquisition forms part of Novus Holdings’ business strategy to diversify into related and new markets to boost profitability and increase cash flow 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.
The group, in conjunction with ITB Manufacturing plans to expand on the current ITB offering and gain organic growth in the flexible plastic packaging and wrap around label sectors.
‘We are delighted to join forces with the group of companies. We look forward to the opportunities of offering 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,’ says Tim Stewart, MD of ITB Manufacturing.