BUCHAREST (Romania) September 16 (SeeNews) - Romanian roof systems manufacturer Wetterbest, part of TeraPlast Group [BSE:TRP], has signed an agreement to fully take over Cortina WTB, a local metallic roof tiles producer and distributor in the Oltenia area, TeraPlast said on Monday
By way of this transaction, Wetterbest is increasing its equity in in Cortina WTB from 51% to 100%, TeraPlast Group said in a statement filed with the Bucharest Stock Exchange, BVB.
The transaction, whose value was not disclosed, will be completed upon approval by Romania's Competition Council.
"The acquisition of Cortina WTB is part of the TeraPlast Group’s development process. Wetterbest is one of the companies that contribute most to the group’s revenue and through this acquisition we sustain our plans of consolidating and expanding our distribution network and client portfolio on both the local and the regional market," TeraPlast board of directors chairman Dorel Goia said.
Located in Podari, Dolj county, Cortina WTB is one of the most important metallic roof tiles manufacturers and distributors in southwestern Romania. Its production capacity surpasses 1,5 million sq m annually.
Wetterbest is the second largest producer on the roof systems market in Romania, terms of both volume and value. At present, production takes place on 40 automated production and packaging lines in three locations: Baicoi (Prahova county), Podari (Dolj county) and Saratel (Bistrita Nasaud county).
In the first half of 2019, Wetterbest increased its revenue to 105 million lei ($25 million/22 million euro) from 82 million lei in the comparable period of last year. The company’s profitability increased by 22%, with EBITDA surpassing 5 million lei.
The Wetterbest products and present in most DIY stores and in the three showrooms in Cluj, Timisoara and Brasov.
The TeraPlast Group product portfolio comprises several business lines: installation, PVC joinery profiles, compounds, thermal insulating panels, windows, doors and metallic tiles. The group comprises the following companies: TeraPlast, TeraSteel Romania & Serbia, Wetterbest (Depaco), TeraGlass, TeraPlast Hungary. Starting April 2019, the recycling business has been spun off to the independent company TeraPlast Recycling.
TeraPlast's shares traded 1.25% higher at 0.3240 lei as at 1105 CET on Monday on the Bucharest Stock Exchange.
(1 euro=4.7354 lei)