German thermoplastics processor Simona on Monday announced that it plans to buy 70% shares of leading Turkish plastic company MT Plastik.
The move, seen as part of Simona's strategic realignment in Europe, aims to strengthen the company's market position within the area of polyvinyl chloride (PVC) foam products, it said in a statement.
PVC foam sheets are used primarily in the field of digital printing, advertising and structural engineering.
MT Plastik is a privately owned company, employing around 50 people and generating revenue of more than 11 million euros ($13 million).
Approximately 60% of MT Plastik's revenues consist of sales to foreign markets, mainly to Europe. It produces PVC products in northern Düzce province.
No information was given regarding the financial details of the acquisition.
The acquisition is expected to be completed by Dec. 31, after the necessary permissions are obtained.
Noting that MT Plastik is a highly profitable company, Matthias Schonberg, the CEO of Simona, said: "Turkey as a location and the high share of exports already achieved by MT Plastik give us access to other interesting markets in Europe and the Middle East."
Schonberg stressed that their customers will benefit from a greater focus on applications, a stronger market presence based on a dense network of competent distribution partners and improved logistics and services thanks to the transaction.
"Even against the backdrop of the current uncertainty brought on by COVID-19, we are confident of the timing of the acquisition. MT Plastik has mastered the crisis well so far and the advertising sector also looks set to emerge quickly from the crisis," Schonberg added.
MT Plastik Board Chairman Tufan Kalkan said that the current owners will preserve 30% of their shares. He added that combining the product scale of both companies will create a synergy that customers will benefit from.
Simona AG has 1,500 employees in total. Its shares are traded in the General Standard of Deutsche Borse, Frankfurt, as well as in Dusseldorf.