Romanian TeraPlast Group (TRP) has sold its plastic window profiles business to Dynamic Selling Group, a local producer and distributor of window profiles for thermal insulating carpentry.

The two sides agreed on a value of around EUR 4.5 mln, which will be adjusted based on the working capital level when the transfer will occur.

This is TeraPlast's second deal this year, after the sale of its Steel division to Irish group Kingspan.

"The window profiles business was the only one in the group where we were not in the top two players in the market. Our strategy has been to be number one or two on any of the markets in which we operate," stated TeraPlast CEO Alexandru Stanean.

Dynamic Selling Group became the leader of the plastic window profiles market in Romania after taking over the specialized division Ramplast from bankrupt chemical group Oltchim, in 2017. DSG is controlled by two Romanian businessmen from Galati, Gabriel Stoian (75%) and Cristian Stoleru (25%).

TeraPlast's decision comes as the company is currently expanding into new business lines and markets.

"Our objective for every business we enter is to reduce the imports that Romania makes and produce at the same technical level as the large international manufacturers," said Stanean.

In the first nine months of 2020, TeraPlast Group registered a 14% increase in turnover, to EUR 167 million, and a 46% increase in EBITDA, to EUR 20 mln.

The window profiles contributed EUR 9 million to TeraPlast's turnover in the first nine months of 2020. This business line's distribution network includes over 200 clients, thermal insulating carpentry producers, and the TeraPlast subsidiary in Hungary.

andrei@romania-insider.com

(Photo source: the company)