Johannesburg - The Twinsaver Group on Thursday acquired Validus Medical, a manufacturer of hygienic disposable products, marking its new chapter to focus on establishing the business as a diversified fast-moving consumer goods (FMCG) company. Owned by private equity investment firm Ethos, Twinsaver is the national manufacturer, marketer and distributor of branded tissue products, supplying both consumer households and businesses across South Africa.
Twinsaver chief executive Garth Towell said the acquisition was a significant move forward for the business.
"[The acquisition] will enable us to further diversify our product proposition, service new consumer segments and accelerate Validus' growth through investments into technology, talent and access to wider networks," Towell said.
Known for brands like Clemens and Bumbies, Validus has quickly grown its national portfolio of disposable medical products across South Africa's hospital, frail care and baby care industries since it was established in 2005.
Validus managing director, Folkmar Geyer, said the synergies between the two companies are many; both businesses are market leaders with complementary products and a proudly South African heritage.
The sale is expected to provide Validus with the capital required to expand into ancillary and new categories.
"The added advantage is that the sale will help increase Validus' production efficiencies and as a wider business, will help bolster the output of South Africa’s manufacturing industry," Geyer said.
"With the manufacturing sector contributing more than 15 percent to the national GDP, we believe our business and the investments we make, play a vital role in unlocking the deeper potential within the sector."
The sale, for which an amount was not disclosed, is subject to regulatory and Competition Commission approval.