The decision comes as a result of TeraPlast’s strategy to expand to new businesses and markets. The transfer will be made after obtaining antitrust clearance.
“The window profiles business was the only business in the Group where we were not in the top two players in the market. With our partners from Dynamic Selling Group we analyzed three options: acquiring the business, a merger of our profile businesses or selling this business to them. Under similar financial coordinates we decided to sell the window profiles business to the number one manufacturer in Romania,” said TeraPlast CEO Alexandru Stanean.
“We chose to focus on developing other areas of TeraPlast’s business. Our objective for every business we enter is to reduce the imports that Romania makes and to produce at the same technical level as the large international manufacturers,” Stanean added.
In the first nine months of 2020, TeraPlast Group registered 14% growth in turnover, to EUR167 million, and 46% growth in EBITDA, to EUR20 million.
The window profiles represented EUR9 million in TeraPlast’s turnover in the first nine months of 2020. The distribution network of this business line includes over 200 clients, thermal insulating carpentry producers, as well as the company TeraPlast Hungary.
For 2020, TeraPlast Group estimates EUR9 million net profit for the Plastics Division, four times higher than in 2019. For the same division, the group has ongoing investment projects worth over EUR32 million.