The Karanović & Nikolić legal practice advised Teraplast Bistrita (TRP), the largest PVC processor in Romania, in the acquisition of Interlemind, a Serbian producer of sandwich panels, by means of public auction of the bankruptcy estate. The value of the acquisition is 4.3 million euros, while Teraplast's planned investment in Serbia amounts to EUR 11 million. This includes the factory's acquisition value, as well as investments of EUR 2.7 million in development and EUR 4 million worth of work capital.
Interlemind has production capacities similar to that of TeraSteel – one of Teraplast's subsidiaries, as well as the same machinery. The Serbian company will mainly serve Southeast European countries – Serbia, Bulgaria, Macedonia, Bosnia and Herzegovina, Croatia and Montenegro, as well as secondary markets – such as Hungary, Southern Romania and Northern Greece.
According to internal company estimates, Southeast European markets have a potential of 9.6 million square meters in 2017, or about 153 million euros. Serbia's market is estimated at 2.3 million square meters, 20 percent of which is represented by the local production, the difference being imports. By comparison, in Romania, local production represents about 80 percent of the total market and the company has 9 factories for the production of thermal insulating panels.
This acquisition is a part of Teraplast Group's strategy to increase sales and profitability and relocate part of the production out of Romania. TeraSteel has been exporting to Serbia, Bulgaria, Montenegro and Slovenia for about two years, and is planning to exponentially increase sales in the Balkan area through the Leskovac plant. The company's leadership is convinced that the Teraplast Group can become an example for other Romanian companies that have not yet been encouraged to open factories on foreign markets.
The Teraplast Group includes several companies, engaging in the production of pipes, granules and PVC profiles, PVC windows and doors, sandwich panels and galvanised metallic structures and polyethylene pipes.
The Karanović & Nikolić team in this case was led by partner Miloš Jakovljević and attorney at law Sonja Radović.
The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.