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BUCHAREST (Romania), May 13 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said on Monday it has increased its equity stake in local roof tiles producer Depaco-Wetterbest by 32%, reaching 99% ownership.
TeraPlast Group will pay 5.1 million euro ($5.73 million) for the 32% stake by December 2020, it said in a press release.
With this stake included, the group's total investment in Depaco has reached 17 million euro.
“The acquisition follows the TeraPlast Group’s policy of consolidating its stakes in its subsidiaries. The evolution of this business since entering TeraPlast Group confirms the trust we have had, and we still have in both the company’s potential and the opportunities that the 300 million euro roofing systems market can offer us," TeraPlast directors board chairman Dorel Goia said.
In the first quarter of 2019, Wetterbest made the biggest contribution to the consolidated turnover of TeraPlast Group, adding 3.9 million euro compared to the first quarter of 2018. The increase is a result of the measures implemented by the commercial department as well as of the development of the industrial sector, TeraPlast Group said.
In 2019, the company targets an 18% annual increase in turnover to 55 million euro and a 51% annual growth of EBITDA to 4.6 million euro.
TeraPlast Group said it plans to allocate some 1.9 million euro from a wider state aid package approved last year for a new Depaco-Wetterbest production facility in Baicoi.
The acquisition of Depaco started in 2017, TeraPlast reaching a 67% equity stake in January 2018.
The TeraPlast Group product portfolio comprises several business lines: installation, PVC joinery profiles, compounds, thermal insulating panels, windows, doors and metallic tiles.
TeraPlast's shares traded 0.79% higher at 0.2540 lei as at 0927 CET on Monday on the Bucharest Stock Exchange.