Romania's TeraPlast completes takeover of Wolfgang Freiler

To finance the transaction, TeraPlast Group secured a 13 million euro loan from Banca Transilvania, TeraPlast said in a press release on Thursday.

As part of the transaction, TeraPlast Group obtained full ownership of WF Kunststoff Handels GmbH, Wolfgang Freiler GmbH & Co KG, Itraco GmbH, Polytech Industrie Kft, Sorgyari Ipari Park Kft, and Pro-Moulding Kft.

The transaction will see TeraPlast Group expand its market reach across Hungary, the Czech Republic, Austria, Germany, and France, where the acquired companies hold strong positions, according to the press release.

"[...] we had until the end of April to close the transaction, we preferred to implement it sooner to consolidate the Freiler Group's results for the entire second quarter of this year," said Alexandru Stanean, CEO of TeraPlast.

The acquired assets comprise six economic entities, grouped into three segments: a trading company in Austria, and two production units in western Hungary. The Hungarian factories, Pro-Moulding and Polytech, collectively produce over 18,800 tonnes/year, offering cooperative opportunities with TeraPlast's facilities.

Also, 144 employees from the Austrian will join the TeraPlast team, bringing the total number of employees in the TeraPlast Group to over 1,100.

Headquartered in Wiener Neustadt, Austria, Wolfgang Freiler recorded revenue of 31 million euro in 2022 and an EBITDA margin of 12%.

TeraPlast has been listed on the Bucharest Stock Exchange since 2008. The group’s net profit plummeted 93% on the year to 1.14 million lei ($247,480/229,395 euro) in 2023, it said in a press release last month.

TeraPlast shares traded 0.92% higher at 0.548 lei as at 1205 CET on Friday, on the Bucharest bourse.

($=0.926785 euro)