TeraPlast, the leading Romanian construction materials producer, announced that it reached an agreement for selling its Steel division to Kingspan Group of Ireland.

The agreed price is RON 410 million (EUR 85 mln), adjusted for the net debt and working capital.

The deal, pending usual pre-requisite conditions such as the competition body's permit, includes TeraPlast's stakes in TeraSteel, TeraSteel Serbia, and Wetterbest.

The sale is also subject to approval by the TeraPlast's shareholders. Local businessman Dorel Goia owns 46.8% of TeraPlast shares.

Finnish investment fund KJK Balkan Holding owns a 10% stake, and the Privately Managed Pension Fund NN owns 11% of the company. TeraPlast is one of the Bucharest Stock Exchange's blue chips with a market capitalization of RON 522 mln (EUR 107 mln).

Kingspan produces thermal insulation and thermal enveloping systems and operates in over 70 countries with more than 100 factories employing some 13,500 people.

The Irish group entered the Romanian market indirectly in 2015 when it took over for EUR 315 mln Belgium's Joris Ide - the owner of local metal roof producer Megaprofil.

Teraplast's Steel division generated RON 578 mln (EUR 125 mln) consolidated revenues. It contributed over RON 50 mln (EUR 11 mln) to the group's EBITDA last year.

(Photo: TeraSteel SA Facebook Page)

editor@romania-insider.com