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The Restonic acquisition improved the group’s ability
to provide a fully integrated supply to the bedding industry

By bringing together Restonic, Vitafoam and DesleeMattex, the newly formed integrated bedding division can take advantage of the already strong market positions of these underlying businesses.

Acquiring and incorporating Restonic into KAP’s integrated bedding division was a natural evolution and has formed a perfect partnership. Restonic added additional market share, experience, expertise and a new world-class production facility to the capability of the Vitafoam and DesleeMattex infrastructure.

The group’s focus on and investment in technology enable the joint operations to manufacture high-quality branded beds and all primary bedding components. Operating from five strategically positioned locations throughout South Africa and Namibia, the division’s and the group’s extensive infrastructure and scale benefits reduce costs and enable divisions to provide products and services to customers at affordable prices.

The newly formed division manufactures more than 90% of the raw material and components used in
the production of superior quality mattresses and bed bases.

Restonic-mattress
A - Knitted and jacquard fabrics (DesleeMattex)
B - Dacron fibre (Buffalo Textiles)
C - High density foam layers (Vitafoam)
D - Thermo bonded insulation pads (Buffalo Textiles)
E - Inner spring and pocket spring (Restonic)
F - Foam encasing (Buffalo Textiles/Vitafoam)
G - Timber base (Restonic)
H - Plastic components: legs, plugs, air vents, corner guards
and base corners (Restonic)

STRATEGIC DRIVERS

Adding value through specialisation

High barriers to entry

IMPLEMENTATION

Production facilities were reorganised, including new floor layouts and additional machinery installations in order to incorporate full assembly plants into all existing manufacturing locations. Restonic’s raw material production activities were relocated into the first phase of
a new factory to benefit from improved layout and new technology.

BENEFITS

Improved supply chain coordination increased control over inputs and barriers to entry into a saturated market. Consolidation of outputs
and decentralisation of assembly
and distribution functions increased efficiencies and customer service levels.

RESULTS

Economies of scale

Efficiencies

Increased margins

Increased customer satisfaction

Increased market share

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