Johannesburg - A large merger between commercial print and manufacturing firm Novus Holdings [JSE:NVS] and private plastic packaging solutions company ITB Manufacturing came into effect on Thursday.
This after the Competition Commission approved the proposed merger between the two in June 2017.
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, the group said in a media statement.
“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," said Keith Vroon, the group CEO of Novus Holdings.
"This investment in the packaging industry further entrenches us in the broader industrial and manufacturing sectors, and is complementary to our existing operations."
ITB Manufacturing, which has operations in KwaZulu-Natal and Gauteng, produces packaging solutions, automated packaging films for dry goods, industrial bulk packaging, check-out bags, and more.
Tim Stewart, the managing director of ITB Manufacturing, said in a statement: "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 Holdings."
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