Teraplast SA — M&A Activity 2021

Apr 14, 2021

ANNOUNCEMENT

TeraPlast Group received the approval of the Competition Council for the acquisition of Somplast

Bistrița, April 14, 2021

TeraPlast received on April 13, 2021, the favorable notice of the Competition Council for acquiring the sole control of Somplast.

TeraPlast executed the sale order of the former majority shareholder of Somplast SA on December 29, 2020. After the favorable notice of the Competition Council, TeraPlast exerts its control over the company.

Following the acquisition of Somplast, 4.000 tonnes of polyethylene production capacities were added to TeraPlast Group. Of these, 3.000 tonnes represent the films capacity and 1.000 tonnes the pipe production capacity. In addition, TeraPlast acquires 20.000sqm of halls in Nasaud.

TeraPlast Group is also implementing an EUR 12 million investment that is co-financed through state aid for the construction of a biodegradable films factory in the Industrial Park of Saratel. Together with the acquisition of Somplast, TeraPlast's investment in the flexible packaging business so far amounts over EUR 13 million.

The flexible packaging market in Romania amounts to EUR 300 million and 47% of it represent imports. By the flexible packaging investments, TeraPlast Group aims at replacing the imports in the market by offering Romanian qualitative products, certified at European standards. At the same time, the Group aims to become the leader of the Romanian flexible packaging market by 2022.

About TeraPlast Group

The Group is comprised of the following companies: TeraPlast, TeraGlass, TeraPlast Recycling, TeraPlast Folii Biodegradabile and Somplast.

Starting July 2nd , 2008, TeraPlast SA – the parent-company of the TeraPlast Group – is listed on the Bucharest Stock Exchange under the TRP symbol. TeraPlast's shares are included in the BSE reference index, BET, and since the third quarter of 2020 in FTSE Russell's Total Cap and MicroCap indices.

Within the Vektor evaluation based on 15 criteria for investor relations communication, conducted by ARIR, TeraPlast received the highest mark: 10, for the second year.

For additional information you can contact us by

e-mail investor.relations@teraplast.ro or phone +40 741 270 439 – contact: Alexandra Sica.