The transfer is planned for December 31 and is subject to approval by the Competition Council, Electroglobal said in a press release.
”With the addition of the ES Elektro Romania business, Electroglobal strengthens its market position and completes its portfolio of services, offering programming courses in the field of industrial automation, in addition to existing services such as engineering, switchboard manufacturing and turnkey projects in the field of electrical automation and lighting,” Radu Ciorba, managing director and one of Electroglobal’s shareholders, told ZF Transilvania.
“At the same time as the transfer of the business, itsme group is acquiring a minority stake in Electroglobal, in order to further support the company’s growth in the supply of components and technical services.’
The company did not disclose the value of the deal.
ES Elektro Romania and became operational on the Romanian market in 2009. Active in the supply of electro technical components and services to “Industry” it covers the whole of Romania from its head office in Cluj-Napoca, the corporate website says.
ES Elektro Romania posted more than RON60 million (EUR12.5 million) revenue last year, according to Finance Ministry data.
Electroglobal was established in 2004 in Cluj as a distributor of electrical materials and equipment of major European manufacturers and is currently controlled by Radu Ciorba Cristian and Maksay Csaba, while the third partner, Ioan Ciorba, withdrew from the company in 2015.
Electroglobal budgeted RON137.5 million (over EUR28 million) revenue for 2021, according to ZF calculations based on data previously received from the company and those on the Finance Ministry website. Electroglobal made RON8.1 million (EUR1.7 million) net profit last year, up 17% year-on-year, as well as revenue of more than RON110.3 million (EUR22.9 million), according to public data.
(English version by Loredana Fratila-Cristescu)