As a result of the contract concluded on May 10, 2019, TeraPlast’s total investment in the 99% equity stake in Depaco exceeds EUR17 million. The EUR5.1 million price for the 32% additional stake will be settled until December 2020.
“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 euros roofing systems market can offer us,” stated Dorel Goia, Chiarman of the TeraPlast Board of Directors.
In the first quarter of 2019, Wetterbest had the most input in the evolution of TeraPlast Group’s consolidated turnover, adding EUR3.9 million compared to the first quarter of 2018. The increase is a result of the measures implemented by the commercial department and of the development of the industrial sector.
For 2019, the company targets a EUR55 million turnover, up 18% compared to 2018 level, and a 51% increase in EBITDA, up to EUR4.6 million. The new production facility in Baicoi, subject of the project that is partly financed through state-aid, will contribute to these objectives. The new production facility will be active starting with the third quarter of 2019.
From the total amount of EUR6.8 million TeraPlast Group received last year as state-aid, EUR1.9 million are meant for the investment in the new Wetterbest production facility in Baicoi.
The acquisition of Depaco started in 2017, with TeraPlast acquiring the 67% majority of equity stake in January 2018.
TeraPlast Group currently is the largest Romanian construction materials producer. The Group comprises of the following companies: TeraPlast, TeraSteel Romania & Serbia, Wetterbest (Depaco), TeraGlass, TeraPlast Hungary. Starting with April 2019, the recycling business has been spun off in the independent company TeraPlast Recycling.