Romanian plastic construction products manufacturer TeraPlast Group said that it has closed the sale of three of its steel companies to Ireland-based Kingspan Group for 373 million lei ($92.8 million/ 76.5 million euro).
At the same time, the group is planning at least two acquisitions, TeraPlast [BSE:TRP], the flagship company of the group, quoted its CEO Alexandru Stanean as saying in a statement filed with the Bucharest Stock Exchange on Friday.
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TeraPlast announced the deal for its steel division on July 24, 2020. The steel division comprises the business lines operated by TeraSteel SA (Romania), TeraSteel D.O.O (Serbia) and Wetterbest SA (Romania).
The profit from the transaction will be part of the financial statement for the first quarter of 2021, TeraPlast [BSE:TRP], the flagship company of the group, said in its latest statement.
The proposal to award a special dividend, from the extra-ordinary profit will be submitted to an extraordinary shareholders meeting, after the audit of the financial statements for the first quarter of 2021, the company added.
Following the sale, TeraPlast Group will include TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast, with a strong focus on the plastics products, a field with great growth potential.
"We have the financial resources to finance our growth plans as well as to pay a special dividend to our shareholders. We are working relentlessly to implement the investments co-financed by the state aid scheme. One of the new lines is already producing and all production lines will be running by the end of September," Stanean said.
"We are investing this year 165 million lei in TeraPlast and Somplast. Practically, we’re investing 25% of the budgeted turnover for 2021 and we’re generating 200 additional workplaces," he added. "With these investments and a minimum of two acquisitions that we are planning, we will compensate the turnover and EBITDA of the businesses that we sold."
For 2021, the budgeted turnover of TeraPlast Group is 636 million lei, 60% more than that of 2020. For the same period, the budgeted EBITDA of the Group is 89.1 million lei, up 58% on the year.
TeraPlast shares traded 0.74% higher at 0.5460 lei as at 0931 CET on Monday.
(1 euro=4.8745 lei)