European building materials producer Masterplast Group is boosting its position in the Hungarian insulation market as it takes a stake in rival local polystyrene foam producer T-Cell Plasztik kft.
Masterplast, based in Sárszentmihály, Hungary, has acquired a 24% share in T-Cell Plasztik which operates two expanded PS foam panel production plants, one at Hajdúszoboszló in the east of the country and a second in Zalaegerszeg, western Hungary.
Today, T-Cell Plasztik, formed in 2013 by three companies, has an overall production capacity of 300,000m3 of EPS board. It currently holds a 10% national market share.
Last year, T-Cell acquired its second industrial site when it rebuilt a production hall in Zalaegerszeg and invested in a new packaging line at its eastern plant.
Masterplast is one of several investors, together taking control of the smaller Hungarian supplier in a deal signed in June 2019 and due for completion in August. Financial investors include Dr Marcell Lakatos and Zsolt Sinkó, according to T-Cell.
Under the purchase agreement, the firm’s current managing director Flórián Lukács will continue to run the business.
“The acquisition of T-Cell Plasztik Kft ... already provides us with the backdrop for further dynamic growth in polystyrene sales during the high season,” said Dávid Tibor, chairman of Masterplast as he reported its 2019 Q2 results.
Masterplast, Hungary’s leading construction materials supplier, would be strengthened by the deal boosting its capacity, basic materials supply, and logistics enabling it to exploit opportunities offered by the construction industry boom, the firm said.
“The strengthened ownership structure continues to ensure the stability of the company as well as the continuously improving quality of production and customer service, including the Hajdúszoboszló and Zalaegerszeg sites,” T-Cell said in a brief statement prior to the deal closure.
A quoted company, Masterplast group, which reported revenue approaching €100m in 2018, operates subsidiaries in eight countries of Central Eastern Europe including Serbia, Croatia, Romania, Poland, Slovakia, Ukraine, Hungary and North Macedonia.
Its product portfolio ranges from EPS insulation, fibreglass building components, and facade insulation systems to extruded polyethylene foam for packaging.
Last month, Masterplast reported first-half 2019 after-tax profit up 21% at over €2m on revenue that climbed 11% to reach €50.5m. Hungary generated 37% of its sales while revenue in Romania contributed 11% and Serbia and Poland each achieved an 8% share.