TeraPlast expands with 70% acquisition of Croatia’s Optiplast

CROATIA – Polymer processor TeraPlast Group is expanding its presence in the European market by acquiring a 70% stake in Croatian flexible packaging manufacturer Optiplast.

Founded in 1989, Optiplast specializes in producing waste bags, shopping bags, and other packaging films. The company operates a facility covering over 17,000m² and employs 81 people.

Optiplast boasts an annual production capacity of around 5,000 tonnes and a strong commitment to sustainability, with an internal recycling capacity of 1,200 tonnes per year.

The company integrates 60% and 70% recycled materials into its products. In 2023, Optiplast reported a turnover of €10 million (US$10.93 million) and an adjusted EBITDA of €2.2 million (US$2.40 million).

After the acquisition, Optiplast’s current shareholder will remain CEO, ensuring continuity while integrating the company’s successful model into TeraPlast’s TeraBio Pack division.

The transaction is expected to strengthen TeraPlast’s production capacity, enabling it to produce more than 10,000 tonnes of flexible packaging annually.

The deal’s base equity value is €13 million, with the final price for TeraPlast’s 70% stake adjusted for net working capital, cash, and debt. As of 30 June 2024, the projected purchase price would have been approximately €9.5 million (US$10.37 million).

Additionally, a price adjustment mechanism is included to account for grants Optiplast is expected to receive for its photovoltaic panel installation project.

TeraPlast’s chairman, Dorel Goia, emphasized that the acquisition will enhance the company’s reach across Europe, particularly in countries like Italy, Greece, Austria, and the Western Balkans.

The move will improve logistical efficiency and allow TeraPlast to serve Western European markets more easily, boosting profitability and offering comprehensive, sustainable packaging solutions.

The transaction is subject to approval by TeraPlast’s General Meeting of Shareholders and is expected to conclude soon after the resolution.

ProMach expands flexible packaging solutions with HMC Products acquisition

In another development, ProMach, a global leader in packaging machinery and solutions, has acquired HMC Products, a well-known manufacturer, refurbisher, and servicer of horizontal form fill seal (HFFS) machines.

This marks ProMach’s fourth acquisition of the year, enhancing its portfolio of flexible packaging solutions across various industries.

HMC Products fabricates and installs new HMC HFFS machines and rebuilt HMC and Bartelt® HFFS systems, catering to industries such as snack foods, cosmetics, healthcare, pharmaceuticals, and household goods.

The company is also renowned for refurbishing or converting existing machines to extend equipment life, ensuring reliability and sustainability.

Operating from a 60,000-square-foot Machesney Park, IL facility, HMC provides responsive service and parts distribution to its customers.

“We are excited to welcome HMC to ProMach,” said Mark Anderson, ProMach President and CEO.

“Their strong reputation in flexible packaging aligns perfectly with our mission to provide best-in-class packaging solutions.

“This acquisition will further strengthen our strategic market segments and bring additional value to HMC’s loyal customers through ProMach’s global capabilities.”

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