May 30 (SeeNews) - Romanian plastic products manufacturer Teraplast [BSE:TRP] said on Tuesday the country's competition authority has approved its acquisition of 50% of the capital of local metal roof tiles producer Depaco.
After the completion of the deal, the founder of Depaco, Dragos Irimescu, will remain an important shareholder of the company, while Valeriu Irimescu will be its CEO, Teraplast said in a filing with the Bucharest Stock Exchange.
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"Depaco is a solid company and we are convinced that it will bring added value to the Teraplast Group business. We will begin to take advantage of the acquisition and commercial synergies so that we accomplish what we aim for Depaco and by default for Teraplast Group," Irimescu said in the filing.
In March, Teraplast said that the value of the transaction does not exceed the threshold of 10% of the turnover of Teraplast SA and it will be paid both from the company's own sources and financing from credit institutions.
In 2016, Teraplast booked a net profit of 41.5 million lei ($10.1 million/9.1 million euro), up from 28.4 million lei profit a year earlier, while its revenue fell by 4% to 257.3 million lei.
Depaco posted a net profit of 11 million lei in 2016 on EBITDA of 15.76 million lei and a turnover of 130 million lei in 2016, according to the filing.
The company operates a factory in Baicoi where it has some 40 automated lines for the production of corrugated metal sheet roofing systems, drainage systems, seamed metal sheet tiles and others.
(1 euro = 4.56464 lei)