Romania's ROCA buys 18% of local chemical company Sinteza

Roca purchased a package of 11,900,266 shares in Sinteza, it said in a press release without disclosing the value of the deal.

"Sinteza represents both a challenge and an opportunity for ROCA, considering the responsibility we feel towards the company's history and prestige, as well as its significant development potential. We are confident that in the near future, with our involvement, the activity of Sinteza will be expanded and the chemical industry in Oradea and Romania will enter a new stage of development. Sinteza has the potential to support such growth," ROCA investment board member Alex Savin said.

According to ROCA, Sinteza possesses the necessary production line quality standard in order to be able to export its products. The company's main product is benzoic acid, which is a base for production of chemicals used in the food, chemical fertilizer, pharmaceutical and plastics industries.

Sinteza was founded in 1954 as a state-owned enterprise, following the merger of organic chemicals factory Aurora founded in 1905, chemical-pharmaceutical enterprise Vesta founded in 1922 and Zankl & Sons enterprise created in 1923.

The company posted a turnover of 27 million lei ($6.3 million/5.7 million euro) last year, according to ROCA.

ROCA was launched in March last year and is the first investment and management platform dedicated to Romanian companies in financial distress.

In September, ROCA became majority shareholder in local electric cable manufacturer Electroplast.

(1 euro=4.76 lei)