Vienna (OTS) –
- At the extraordinary general meeting on March 11, 2024, TeraPlast shareholders approved the takeover of the Austrian Wolfgang Freiler Group.
- EUR 16.53 million was paid for the transaction, plus an additional “earn-out” mechanism based on the results of 2024.
- The consolidation of the Wolfgang Freiler Group in the results of the TeraPlast Group will take place from the 2nd quarter this year.
- The Wolfgang Freiler Group achieved sales of EUR 31 million in 2022 with an EBITDA margin of 12%.
- The acquired companies have strong market positions in Hungary, the Czech Republic, Austria, Germany and France.
Am March 28, 2024 the TeraPlast Group Takeover of the Wolfgang Freiler Group completed and takes over 100% of the shares of WF Kunststoff Handels GmbH, Wolfgang Freiler GmbH & Co KG, Itraco GmbH, Polytech Industrie Kft, Sorgyari Ipari Park Kft and Pro-Moulding Kft.
The TeraPlast Group paid a purchase price of 16.53 million euros for this takeover. The transaction also includes an “earn-out” mechanism based on the EBITDA achieved by the Freiler Group in 2024. Any payments for the agreed earn-out will be made in 2025, based on the 2024 annual financial statements of the Freiler Group companies.
TeraPlast shareholders approved the takeover of the Austrian Wolfgang Freiler Group at the extraordinary general meeting on March 11, 2024, marking a significant step in the integration and consolidation of the group’s business. The transfer of ownership took place on March 28, 2024.
The Freiler Group will be integrated into the TeraPlast Group and the financial impact will be reflected in the consolidated financial results at group level from the second quarter.
The Wolfgang Freiler Group brings valuable assets with valuable development potential to TeraPlast while offering attractive opportunities to expand the geographical presence in Central and Western Europe in terms of product portfolio mix and expertise. In 2022, Freiler Group recorded sales of 31 million euros and an EBITDA of almost 4 million euros.
M&A transactions are an integral part of TeraPlast’s strategy to expand its geographical presence and increase group resilience in order to take advantage of market opportunities. The integration of the Freiler Group brings with it many synergies, especially cost optimization and the improvement of logistics chains, which will later also be reflected in the financial results.
According to the budget for 2024, the TeraPlast acquisitions of the Wolfgang Freiler Group and Palplast from the Republic of Moldova will have an impact on the consolidated result with an increase of around 15% in sales and EBITDA in the Installations segment. The Austrian group will have the greatest influence.
“Beyond the core business, which was obviously the main selection criteria, we found that we are united by shared values, a similar organizational culture, integrity, care for the community and a development-oriented vision,” Mr. said. Alexandru Stânean, CEO of the TeraPlast Group.
“We are a strong regional champion and with the Wolfgang Freiler Group we are able to strengthen our presence in the markets of Central and Western Europe and at the same time be more agile due to the combined diversity of our products and services, something we are proud of,” added Herr Alexandru Stânean added.
The acquired group includes six companies and is divided into three main segments: a sales company based in Austria and two production units based in western Hungary. The factories in Hungary, Pro-Moulding and Polytech, have a total production of over 18,000 tons/year, and offer many synergies with the TeraPlast businesses. Polytech uses over 80% recycled material to make pipes in the production process. This is in line with the vision of sustainable development of the TeraPlast Group and is also an essential part of the major efforts to contribute to a circular economy transition.
After taking over the 144 employees of the Wolfgang Freiler Group, the TeraPlast Group team will total over 1,100 employees. Mr. Laszlo Vajda, development manager of the TeraPlast Group, also takes over the management and development of the Wolfgang Freiler Group.
About the TeraPlast Group
The TeraPlast Group is the largest polymer processor in Southeastern Europe. The group consists of the following companies: TeraPlast, TeraGlass, TeraPlast Recycling, TeraBio Pack, Palplast Moldova and Somplast. Since July 2, 2008, TeraPlast SA has been listed on the Bucharest Stock Exchange under the symbol TRP. The TeraPlast shares are represented in several indices: in the BET (the leading index of the Bucharest Stock Exchange), in the small cap and global all cap indices of FTSE Russell, in the MSCI Frontier IMI (Investable Market Index) and in the ROTX EUR index of the Vienna Stock Exchange .
In the VEKTOR evaluation conducted by ARIR based on 12 criteria for corporate governance and investor communication, TeraPlast achieved the highest score of 10 for the fifth year in a row.
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