Romanian construction materials producer, TeraPlast Group increased its equity stake in Depaco with 32%, reaching 99%. Depaco is a player on the complete roof systems market through the Wetterbest brand.
As a result of the contract from May 10, 2019, the total investment of TeraPlast in the 99% equity stake in Depaco surpasses 17 million euros. The 5,1 million euros 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, Chairman of the TeraPlast Board of Directors.
In the first quarter of 2019, Wetterbest had the most input in the evolution of the consolidated turnover of TeraPlast Group, adding 3,9 million euros 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.
For 2019, the company aims a 55 million euros turnover, 18% over the 2018 value, and a 51% increase in EBITDA, up to 4,6 million euros. The new production facility, 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 this year’s third quarter.
From the total amount of 6,8 million euros TeraPlast Group received last year as state-aid, 1,9 million euros are meant for the investment in the new Wetterbest production facility in Baicoi.
The acquisition of Depaco started in 2017, TeraPlast reaching the 67% majority of equity stake in January 2018.