Romania's TeraPlast takes over Croatian flexible packaging manufacturer Optiplast
<p>Romanian construction materials producer TeraPlast Group (BVB: TRP), also involved in the manufacturing of polyethylene and bioplastic packaging, announced the signing of a purchase agreement to acquire 70% of the share capital of Optiplast, the third-largest flexible packaging manufacturer in Croatia. TeraPlast's shareholders are summoned on November 15 to endorse the deal.</p>

<p>This is a new acquisition for TeraPlast this year after it acquired a majority stake in Moldova's Palplast (for EUR 1.8 mln for 51%) and 100% of Austria's Wolfgang Freiler Group with modern production facilities in Hungary (EUR 16.5 mln for 100%).</p>

<p>The value of the deal in Croatia will be established starting from a base value of EUR 13 mln for 100% in Optiplast, to be adjusted with net working capital, cash, and debt at the closing date. The deal's value involving 70% of Optiplast's shares would have been EUR 9.5 mln as of June 30, 2024.</p>

<p>By this takeover, financed out of the recent EUR 20 mln capital increase, TeraPlast Group seeks to gain access to new and potentially more lucrative markets for its bioplastic packaging unit TeraBio Pack, which has struggled for years to break even after building a massive production capacity with the aid of a state grant.</p>

<p>"We will be closer to clients in countries such as Italy, Greece, and Austria, and we will be better positioned to focus on the dynamic and mature markets in the Western Balkans. The synergies between Optiplast and TeraBio Pack provide access to clients who value and pay the right price for quality packaging, which will lead to better utilisation of our production capacities," TeraPlast noted in its message to investors.</p>

<p>Optiplast is a company with a similar product range and technology to Teraplast's bioplastic packaging manufacturing subsidiary TeraBio Pack, adding 35 years of experience in the flexible packaging market.</p>

<p>Founded in 1989, Optiplast has an annual production capacity of approximately 5,000 tons and operates in a space of over 17,000 sqm, employing 81 people. The company has an internal recycling capacity of about 1,200 tons per year and uses between 60% and 70% recycled materials. It produces waste bags, shopping bags, and other packaging films and products.&nbsp;</p>

<p>With a turnover of EUR 10 mln in 2023 and an adjusted EBITDA of EUR 2.2 mln, Optiplast exports around 25% of its production to European markets. Its client portfolio includes both distributors and major international retail chains.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: Facebook/TeraPlast)</em></p>