Polymer processor TeraPlast Group is expanding its geographical footprint with the acquisition of a 70% stake in Croatian flexible packaging manufacturer Optiplast.
Optiplast, founded in 1989, specialises in manufacturing waste bags, shopping bags, and other packaging films and products.
The company operates from a facility spanning more than 17,000m² and employs 81 people.
With an annual production capacity of approximately 5,000 tonnes (t), Optiplast is also committed to sustainability, boasting an internal recycling capacity of about 1,200t per year and utilising between 60% and 70% recycled materials in their products.
In 2023, the company reported a turnover of €10m ($10.93m) and an adjusted EBITDA of €2.2m.
Following the acquisition, the current shareholder of Optiplast will continue to lead the company as CEO.
This ensures business continuity and the integration of Optiplast's successful model within TeraPlast's TeraBio Pack division, in collaboration with the local management team.
The equity value of the transaction will be finalised at the closing date, starting from a base value of €13m, adjusted for net working capital, cash, and debt.
The final price for the 70% stake TeraPlast is acquiring will be determined using a formula that considers these adjustments, with a projected purchase price based on Optiplast's financial statements as of 30 June 2024.
If the final price had been calculated on that date, it would have been €9.5m.
The agreement also includes a price adjustment mechanism linked to grants Optiplast is expected to receive for an ongoing project to install photovoltaic panels.
The transaction is subject to approval by TeraPlast's General Meeting of Shareholders and is expected to be finalised shortly after the resolution.
TeraPlast board of directors chairman Dorel Goia said: "Through the acquisition of Optiplast, we are expanding our geographical footprint, and our production capacity now exceeds 10,000t of flexible packaging annually. 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.
“Moreover, we will serve Western European markets more easily, which have been harder to reach from Bistrița due to logistical costs. Thus, we will increase profitability while offering the market complete and sustainable solutions.”
