IN a landmark agreement, Pietermaritzburg’s Shuter & Shooter Publishers has been acquired by Zungu Investments, an existing shareholder in the business.
Shuter is a leading publisher in the South African schools sector, and since starting off as a bookshop almost 100 years ago it has produced, since the early 1930s, quality literature and educational materials in most of the country's official languages as well as for the National Department of Basic Education's school curricula.
The deal increases Zungu’s equity stake in the company to slightly more than 95% – the remaining shares being held by independent black business owners. The transaction means “Shooters”, as it has long been known, is now one of the largest 100% black-owned educational publishers in South Africa.
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Sandile Zungu, founder and executive chairman of Zungu Investments, is involved in a number of businesses and personally invested in education. He obtained a Bachelor of Science from the University of Cape Town and a Master's degree in Business Administration (UCT). He also attended the programme for global leadership at Harvard Business School.
“Education is one of the strategic pillars of the South African landscape and a hugely important area,” he said. “It is one the best ways to change people's fortunes, so we are extremely proud to be investing in this.”
In shaking hands on the deal with Stuart Craib, the third generation of the family that has owned and run Shooters for many years, Zungu added that he was “buying a company with heart and soul”.
The Shuter & Shooter team was passionate about the business, he added. “The company boasts incredible principles and ethics, and after almost a century, has fine, solid foundations.
"It also has integrity. The Craibs have built up a wonderful company with an ethical corporate identity, which is very important for us.”
The Craig family and the new owners have a relationship going back almost two decades: in 2008, Zungu Investments acquired a 36.2% equity stake in the business.
Stuart Craib, former owner of Shuter & Shooter Publishers, with new owner Sandile Zungu.
Zungu assured the staff, all of whom attended the official handover of the business, that they had no reason to fear the new management.
“Since our very first investment into this company 10 years ago, we have taken our time to learn the ropes, to watch how it operates, and learn the culture and the values of Shooters. We have watched how you do business and observed your robust principles and exceptional work ethics. We have faith and confidence in this excellent team and our plan is to grow and expand the company in the future.
“We are here because we want to be here, and look forward to another 97 years of excellent business.”
Craib wished the new owners the best of luck, and said he believed they would take the company even further, and “help our younger population have a good liberal education”.
Zungu, who was born in Umlazi and did a post-matric year at Hilton College (where all three of his sons have been educated), runs most of his businesses from Johannesburg, but weekends are spent at his home in Balgowan, where he owns one of the most sought-after conference and wedding venues in the area (The Zunguness).
His impressive CV includes stints at Richards Bay Minerals (RBM), Engen Refinery, National Sorghum Breweries and South African Breweries. In 1998 he led Sarhwu Investment Holdings to becoming BusinessMap Dealmaker of The Year. In 2000 he represented South Africa at the 6th finals of the World Young Business Achievers, in Florida, US, where he won the much-coveted Outstanding Business Strategy award.
Zungu featured in the Financial Mail's Little Black Book profiling South Africa’s 300 most influential blacks and graduated as a member of the World Economic Forum in his capacity as Young Global Leader.
A member of the Brics Business Council who serves on the BBBEE Presidential Advisory Council, he is also chairperson of the UCT Graduate School of Business advisory board.
Before establishing Sarhwu Investment Holdings in 1997, which he led for nearly four years, growing it from a zero asset base to more than R400 million in the net value of its assets, Zungu was an associate within the corporate finance division of African Merchant Bank.