Project Innovate
R35 000 000,00
Overview
Project Innovate is a highly respected South African manufacturer specializing in industrial non-woven textiles. With more than five decades of operational history, the company is a leader in technical textile production, known for its deep specialization in niche industrial sectors such as automotive OEM, aftermarket, and footwear.
The company operates from a 7,000m² factory with 11 active manufacturing lines, delivering precision-finished products tailored to stringent client specifications. Certified under ISO9001:2015 and ISO14001:2015, Project Innovate places exceptional emphasis on quality, innovation, and customer partnership.
The company services approximately 115 active customers across various sectors and maintains a dedicated workforce of around 95 employees. Its ability to meet low-volume, high-specification orders reflects its flexible and innovation-led manufacturing culture.
The business is seeking an investor to join its next phase of growth as it scales up output, modernizes operations, and expands product segments across automotive, filtration, home textiles, and engineered materials.
Financial Overview
For FY2024, Project Innovate reported revenue of R103.12 million and normalised EBITDA of R17.44 million, with an average historical EBITDA margin of approximately 17.6%. The company has achieved a 9.23% compound annual growth rate (CAGR) over the past six years and is forecasting an average revenue growth of 12.53% going forward.
The business maintains a robust capital position with a net asset value of R29.62 million. Forecasted financial performance indicates sustained margin resilience, driven by technical differentiation, client retention, and product diversification.
The company operates debt-free with strong operational cash flow generation and maintains a balanced cost structure aligned to industrial input cycles.
Operational Overview
Project Innovate currently runs 11 manufacturing lines out of its 7,000m² facility, focusing on engineered non-woven materials tailored to client needs. Its capabilities extend to thermal bonding, needle punching, stentering, laminating, and surface finishing.
Key products include acoustic felts, automotive carpets, trunk liners, velours, upholstery fabrics, coated and uncoated felts, filtration pads, yoga mats, pet fleece, footwear linings, insulation layers, and rigid composites.
The business serves multiple verticals, including OEM and aftermarket automotive, footwear, home products, air filtration, and engineered materials. It maintains a significant innovation advantage through its ability to design and construct customized equipment in-house, allowing it to create unique, technically demanding textile products.
Every production batch is subject to in-house quality testing, supported by a fully equipped lab. This ensures client specifications are met consistently, with full compliance to ISO standards.
History
Established over 50 years ago, Project Innovate has evolved into a specialized industrial manufacturing leader by targeting underserved, highly technical segments of the textile market. Initially founded to supply the South African footwear industry, the company expanded its capabilities into automotive, filtration, and engineered fabric applications over several decades.
Its long-standing relationships with tier-one automotive and shoe manufacturers, as well as its active expansion into homeware and filtration solutions, reflect a strategy built on stability, adaptability, and precision engineering.
The company has demonstrated consistent reinvestment into technology and staff development, and has grown organically without the need for external capital or major restructuring.
Investment Opportunity
A 51% equity stake in Project Innovate is available for acquisition. The current shareholders are seeking a strategic or growth-focused partner to help scale operations, introduce automation, and support expansion into new markets or product verticals.
Asking Price for 51% Equity: ZAR 35 million
This represents a full business valuation of approximately R68–70 million, based on a 4x normalized EBITDA multiple and strong historical performance.
Key benefits for investors include:
Consistent profitability with low customer churn
Technical moat in customized production processes
Broad product diversity across recession-resistant sectors
Clean corporate structure, strong asset base, and no debt
High cash conversion and margin consistency
Clear scalability across new production lines and verticals
Ideal buyers include private equity, manufacturing groups, automotive suppliers, or industrial holding companies with a focus on niche innovation, high-margin production, and technical insulation.