June 7 (SeeNews) - Romanian plastic products manufacturer Teraplast [BSE:TRP] said on Wednesday it has acquired Serbian sandwich panel producer Interlemind for 4.3 million euro ($4.8 million).
"Teraplast will invest this year 11 million euro in Serbia, amount that includes the value of the plant acquisition, investments of 2.7 million euro in development and working capital of 4 million euro," the Romanian company said in a statement.
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The acquisition in Serbia is in line with the strategy of Teraplast to increase sales and boost profitability, the chairman of the board of directors of the company, Dorel Goia, said.
The acquired sandwich panels factory will mainly serve the markets of Serbia, Bulgaria, Macedonia, Bosnia, Croatia and Montenegro, but also secondary markets like Hungary, southern Romania and northern Greece, Teraplast noted.
The Serbian sandwich panels market has a volume of 2.3 million sq m, of which domestic production covers 20%, the company added.
Teraplast targets a consolidated turnover of 434.6 million lei and a net profit of 38.1 million lei in 2017. In the first quarter of 2017, Teraplast reported a turnover of 66.5 million lei and a net profit of 1.6 million lei.
($ = 0.89056 euro)