Novus lowers print asset sale to $5.2 million after due diligence

Novus Holdings Limited, the South African printing and packaging group, has reduced the value of its print business sale to R85 million ($5.23 million) following a due diligence review by buyer Firm Favourite Investments 10 Proprietary Limited. The revised deal underscores shifting valuations in the print sector as digital transformation continues to reshape demand patterns globally.

The transaction, initially valued at R91.7 million ($5.64 million), was adjusted after the purchaser completed a detailed assessment of the Novus Print Letting Enterprise. Both parties subsequently agreed to revised terms reflecting updated financial and operational realities.

Deal terms revised after due diligence

The updated agreement lowers the disposal value while maintaining the overall structure of the transaction. Novus also extended the deadline for fulfilling conditions precedent from April 17 to April 30, 2026, with provisions allowing further extensions if mutually agreed.

Despite the revision, the disposal remains classified as a Category 2 transaction under Johannesburg Stock Exchange (JSE) listing rules, signaling its continued significance within Novus’ portfolio.

Portfolio optimization strategy gains momentum

The disposal aligns with Novus Holdings’ broader strategy to streamline operations and divest non-core assets. By reallocating capital, the company aims to focus on higher-growth areas within packaging and specialized printing segments. This disciplined approach to capital allocation reflects management’s effort to enhance long-term shareholder value while maintaining operational efficiency.

Print industry faces structural transformation

Headquartered in Cape Town, Novus Holdings, which started as a small family-run business in 1905, is now one of the largest printing, publishing and manufacturing companies. With core operations which include an extensive network of specialised printing and manufacturing plants, it is currently valued at a market capitalization exceeding $110 million.

The revised sale highlights broader pressures facing traditional print businesses, including declining demand and the rapid rise of digital alternatives. Across South Africa and globally, companies in the sector are increasingly restructuring portfolios to adapt to changing consumption patterns. For Novus, the transaction represents a measured step in repositioning its business model within a transforming media landscape.