TeraPlast Group announces the signing of a purchase agreement to acquire 70 percent of the share capital of Optiplast, the third largest flexible packaging manufacturer in Croatia. Optiplast is a company with a similar product range and technology to TeraBio Pack, adding 35 years of experience in the flexible packaging market.
“Through the acquisition of Optiplast, we are expanding our geographical footprint, and our production capacity now exceeds 10,000 tons 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 utilization 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.
We have taken another step in developing TeraPlast Group at the European level, a step made possible with the support of our shareholders through the EUR 20 million capital increase, which was recently completed successfully.” Said Dorel Goia, Chairman of TeraPlast’s Board of Directors.
“I am incredibly proud of what we have built over the past 35 years in Croatia and neighboring markets. I believe that Optiplast has reached a pivotal point where we must take the next step forward, and we are doing so by joining forces with TeraPlast Group. Together, I am sure we will grow into a strong regional leader, delivering top-quality packaging products to the regional market.” said Danijel Drčić, owner and CEO of Optiplast.
The current shareholder of Optiplast will remain active in the company’s executive management as CEO, ensuring the continuity of the business strategy and the implementation of Optiplast’s successful model within TeraBio Pack, alongside the local management team.
The equity value will be determined at the closing date of the transaction, starting from the base value of EUR 13.000.000 adjusted with net working capital, cash and debt at the closing date. Based on this formula the final price shall be established for the 70 percent of the shares TeraPlast is to acquire from Optiplast. The agreement includes a projected purchase price, considering adjustment elements from Optiplast’s financial statements as of June 30, 2024. If the final price had been determined on June 30, 2024, it would have been of EUR 9.5 million. The agreement also includes a price adjustment mechanism depending on the grants that Optiplast is to receive for a project for the installation of photovoltaic panels which is ongoing.
The transaction will be subject to approval by the General Meeting of TeraPlast shareholders, and upon approval, the transaction will be finalized shortly after the EGMS’ resolution.