Teraplast Bistrita buys 50% stake in roof tile producer Depaco

Teraplast Bistrita (TRP), one of the biggest Romanian industrial groups, will acquire a 50% stake in Depaco, the second-biggest producer in the local metal roofing market. The purchase is strategic, as Teraplast’s subsidiary TeraSteel is the market leader on the galvanized steel structures market, and the new products entering the portfolio will be complementary. The acquisition will help the group develop its supply market in the Transylvania area and abroad, as 20% of the turnover of Teraplast comes from exports. Depaco representatives said that it’s not the first time when they received acquisition proposals, but most of the times these were made by investments funds. This time it came from people who not only had the money, but also the “know-how”. The deal’s value doesn’t exceed 10% of the turnover recorded by Teraplast Bistrita last year. Teraplast, whose main business is producing PVC profiles and pipes for the construction sector, reported revenues of EUR 88.2 million and a net profit of EUR 8.9 million last year. Depaco had a turnover of almost EUR 29 million and a net profit of EUR 2.44 million in 2016. editor@romania-insider.com