January 23 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said on Thursday that it has acquired the remaining 1% interest in local roof systems manufacturer Wetterbest, becoming its sole owner.
The total investment in the acquisition of Wetterbest, which started in 2017, is over 17 million euro ($18.8 million), TeraPlast Group said in a bourse filing.
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TeraPlast Group increased its stake in Wetterbest to 99% in May 2019, from 67% in January 2018.
"Wetterbest benefited from one of the largest investment projects of the TeraPlast Group in the last 3 years. The new production unit, together with the acquisition of Cortina, which was approved by the Competition Council, represent advantages that the main European players enjoy. This is the basis for us to achieve our 2020 objectives” Marian Pirvu, CEO of Wetterbest, said.
Last year, Wetterbest acquired Cortina WTB - a metallic roof tiles producer and distributor for the Oltenia area, and subsequently increased its stake to 100%.
The company also invested 8.4 million euro in its new production facility, which is expected to increase Wetterbest's production capacity and optimise the logistics and storage processes. The relocation will be finalised by the start of the 2020 season.
In the first nine months of last year, Wetterbest increased its turnover by 22% to 202 million lei, while its earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 10% to over 13.5 million lei.
As at 9:15 CET on Thursday, Teraplast shares traded at 0.305 lei, unchanged from their previous closing price on the Bucharest Stock Exchange.
($ = 0.9024 euro)