Romania’s TeraPlast completed the sale of its steel products division to Kingspan for €76.6mn ($92.3mn) on Feb 26, the company announced on Monday.
The deal was originally announced in July 2020 and includes the sale of the company’s business lines operated by TeraStell SA in Romania, TeraSteel DOO in Serbia, and Wetterbest SA in Romania.
TeraPlast Group will continue its operations through TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradeable, and Somplast. The company said the sale was part of its strategy to focus on plastics and metals recycling through mergers and acquisitions. The group is investing €33.7mn in TeraPlast and Somplast.
TeraPlast will reinvest 25pc of the €130mn in revenues expected for 2021, an increase of 60pc against those achieved last year. EBITDA is forecast to increase by 58pc to €18.3mn against last year. About 200 additional positions will be created in 2021. Chief executive officer Alexandru Stanean said that the company plans at least two acquisitions this year.
TeraPlast applied for state grants to fund about 50pc of three expansion projects totaling €30mn. Two grants have already been approved. The company is owned 46.8pc by Romanian investor Dorel Goia and a private pension fund has a 12pc stake.
Ireland-based Kingspan focuses on buildings materials with over 100 factories employing about 13,500 people.