February 2 (SeeNews) - Romanian polymer processor TeraPlast Group said it has agreed to acquire construction, real estate and hospitality specialist Wolfgang Freiler Group, with two factories in Hungary, from the Austrian Uhl family for 16.53 million euro ($17.8 million).
The takeover is funded through internal sources and bank financing, while the transaction involves an additional earn-out mechanism based on the target’s performance in 2024, TeraPlast Group said in a press release on Thursday.
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The transaction includes the takeover of Polytech and Pro-Moulding, Wolfgang Freiler’s two production facilities in Hungary. Polytech manufactures pipes for the protection of electrical cables and optical fibres, while Pro-Moulding specialises in plastic injection.
Wolfgang Freiler Group also includes Freiler, which oversees the group’s distribution activity, as well as an entity which owns a 5-hectare industrial base and warehouses in southwest Hungary. The group’s products are marketed in Hungary, the Czech Republic, Austria, Germany, and France.
Wolfgang Freiler Group's revenue in 2022 reached EUR 31 million, with an EBITDA margin of 12%.
Following the transaction, Wolfgang Freiler Group’s 144 employees will join TeraPlast Group.
“The entire business environment should pursue long-term expansion and development plans, carrying Romanian products and capital throughout Europe […] With this acquisition, ambitious plans regarding Western markets emerge,” Dorel Goia, chairman of TeraPlast’s board of directors, said.
TeraPlast Group’s strategy is focused on acquiring businesses with potential in markets where the competition is less intense than in Romania.
“We will continue the development of the Wolfgang Freiler Group through a 2 million euro investment in expanding the product portfolio for infrastructure and enhance our competitiveness in the region,” Alexandru Stanean, TeraPlast CEO, said.
TeraPlast Group comprises six companies, with its parent company TeraPlast [BSE:TRP] having been listed on the Bucharest Stock Exchange since 2008.
TeraPlast shares traded 5.41% higher at 0.604 lei as at 0903 CET on Friday on the Bucharest bourse.
($=0.9264 euro)