For every entrepreneur, there comes a moment when the question changes. It’s no longer, “How do I grow this business?” Instead, it becomes, “Who is best placed to take it to the next level?”
For many founders, that moment arrives after years, sometimes decades, of building something exceptional. The business is profitable. The brand is trusted. Customers are loyal. Yet the next stage of growth requires greater scale, broader market access, additional resources or international reach that cannot easily be achieved independently.
Recognising that moment is one of the most important strategic decisions a business owner can make. That was the position in which Glenart found itself.
Founded in South Africa, Glenart had built an enviable reputation as a designer and manufacturer of premium Christmas crackers, supplying retailers both locally and internationally. Through a commitment to innovation, quality and operational excellence, the company established itself as a market leader within its niche, one that would ultimately attract the attention of one of the world’s leading celebration product businesses.
The business had reached a stage and size where the next level of growth could only come through acquisition by a strategic acquirer.
Rather than viewing such a transaction as the end of the journey, Glenart’s shareholders saw it as the beginning of a new chapter, one that would position the business for continued growth within a larger global organisation.
Their eventual partner was IG Design Group PLC, a London Stock Exchange-listed designer, manufacturer and distributor of celebration products, stationery, gifting and creative play products, with operations spanning multiple international markets. For both organisations, the transaction represented an opportunity to build on existing strengths and create a platform for long-term growth.
Navigating a complex cross-border transaction
Strategic acquisitions aren’t straightforward, and cross-border transactions introduce an additional layer of complexity. Different legal systems, regulatory environments, commercial practices and financial considerations all need to be carefully navigated while maintaining alignment between buyer and seller.
The Glenart transaction took close to two years from inception to completion, which is, in itself, a reflection of the care required to ensure that every aspect of the transaction supported the long-term interests of both parties. One of the more significant challenges emerged during negotiations around working capital.
The cyclical nature of the business, combined with its continued growth, created differing views on the appropriate working capital position. Resolving those differences required careful analysis, open communication, and a shared focus on achieving the right long-term outcome.
While negotiations naturally involve differing perspectives, the shared objective remained constant: creating a transaction that reflected the true value of the business while establishing a strong foundation for future success.
More than an acquisition
For IG Design Group, the acquisition represented more than additional manufacturing capacity. The company identified Glenart as a highly complementary business with a proven manufacturing platform, longstanding customer relationships, and a strong reputation for quality and innovation. Integrating Glenart into its global celebrations portfolio strengthens the Group’s position within a key product category, while creating opportunities for operational collaboration and continued international growth.
For Glenart, becoming part of a global organisation provides access to broader markets, increased resources, and the scale needed to continue building on decades of success.
The result is a transaction that creates value on both sides, bringing together two businesses whose capabilities complement one another and position each for future growth.
A reflection of South African business
Reflecting on the transaction, it represents something much broader than the successful completion of a single deal. It was a great reflection on the quality of businesses in South Africa.
South African businesses are robust and can be agile or measured in their response to challenges and opportunities. That resilience continues to distinguish South African businesses on the global stage. Companies that combine entrepreneurial thinking with disciplined execution are increasingly attracting interest from international strategic acquirers seeking high-quality businesses with proven capabilities and long-term growth potential.
The Glenart transaction demonstrates that world-class businesses are not defined by geography; they are defined by the quality of their people, products and operations.
Preparing for your own next chapter
While every transaction is unique, one principle remains remarkably consistent: businesses that are built for long-term excellence are the businesses that attract exceptional opportunities.
For owners considering their own future, the following simple, but powerful, advice is offered:
Always run the business like you were not selling it, but were rather preparing for a listing on a stock exchange. Strong governance, disciplined financial reporting, capable management teams and operational excellence do far more than increase saleability. They create stronger, more resilient businesses, whether a transaction ultimately takes place or not.
Looking ahead
The acquisition of Glenart by IG Design Group is more than the story of a successful cross-border transaction. It is a story of recognising the right moment, preparing a business for its next phase of growth, and finding a strategic partner capable of unlocking new opportunities.
For business owners, it offers an important reminder that the best exits are rarely about stepping away. More often, they are about ensuring that the business you have spent years building is positioned to achieve even greater success in its next chapter.
As South African businesses continue to demonstrate their resilience, innovation and global competitiveness, transactions like Glenart’s serve as a powerful example of what is possible when exceptional companies are built with ambition, discipline and a long-term vision.
Anthony McCardle is a Director | Benchmark International
This article first appeared in DealMakers, SA’s quarterly M&A publication.
DealMakers is SA’s M&A publication.
www.dealmakerssouthafrica.com
