On the heels of the successful management buyout this past March from DT Industries, Nova Packaging Systems today made a joint announcement with IMA Industria Macchine Automatiche SpA (Bologna, Italy) that the two companies have signed a merger agreement. Nova's UK facility, operating under the name Swiftpack Automation since March, is part of the agreement, as well. The new company name is IMA Nova in the U.S. and IMA Swiftpack in the U.K.

Nova Packaging Systems and Swiftpack Automation manufacture, market and service the Lakso, Merrill, Kalish, Swiftpack and King brands of pharmaceutical packaging equipment, brands that will continue to grow and be supported by IMA. Jim Ririe and David Fischer, CEO and President of Nova, respectively, will continue in their management responsibilities here in the U.S, as will Des O'Neil, Managing Director of the UK plant. Ririe, Fischer and O'Neil also remain shareholders in IMA Nova.

IMA Nova and IMA Swiftpack will exhibit at Pack Expo International 2004 in Chicago in the company's own booth (S-866), separate from the IMA booth (E-7113).

Under the terms of the agreement, IMA acquired the shares of Nova's original financial partner, New York-based Kinderhook Industries, and after four years will wholly own all shares in IMA Nova.

Financially stronger since management buyout
"This merger is a tremendous opportunity for both organizations," explains Stefano Visentini, CEO of IMA Industria Macchine Automatiche.

"IMA is very strong in pharmaceutical processing equipment, blister packaging, and also in end-of-line packaging of pharmaceuticals. Nova's product line of tablet counting/bottle filling and allied machinery is the one missing piece in IMA's extensive offering, enabling us to sell complete processing-to-packaging lines to global pharmaceutical corporations. In addition, as a result of the merger, we hope to increase our share of the blister packaging market in North America and will be moving some manufacturing to Nova's plant in Leominster," says Visentini.

"Ever since the buyout from DT," notes Ririe, "Nova has been doing so well that we were courted by a number of potential partners. We also started looking at acquiring other companies ourselves. With IMA, we now have a strategic and financial partner with global presence. We also have access to IMA's 400 engineers, and this will boost product development efforts considerably. And the two companies have similar business philosophies with a strong commitment to dependable and responsive customer support and service."

In the second quarter of 2004, the first full quarter after the buyout, Nova reported a 31.3% increase in revenue over the same quarter of the previous year, and three-fold increase in operating profit, demonstrating the financial benefits of restructuring.

For more information, contact IMA Nova, 7 New Lancaster Road, Box 929, Leominster, MA 01453. Telephone (978) 537-8534; fax (978) 840-0730. E-mail: sales@novapackagingsystems.com.