Weeks after announcing the purchase of an expanded polystyrene production plant in Romania, Austrian packaging and insulation specialist Hirsch Servo AG is to buy two more local EPS operations from Arcon SRL.
The Austrian group's insulation division Hirsch Porozell S.r.l. has agreed to acquire EPS insulation units in Bucharest and Sfântu Gheorghe from the Romanian firm which will focus on its bituminous roofing membranes business.
The purchase for an undisclosed sum was formally reached Aug. 17 and is still conditional, subject to approval by Romania's competition authorities, according to Hirsch Servo.
Hirsch Porozell, which runs an EPS transit packaging and insulation plant in Cluj, recently announced its takeover of the EPS sandwich insulation panels and pre-insulated pipes plant of insolvent Romanian firm Energoterom near Timisoara.
“We aim to continue expanding our insulation division and secure it in the long term with our acquisition of Arcon's insulation business,” said Hirsch Servo group chief executive Harald Kogler.
He said the market for insulation products is performing well and has generated good revenue and growth for Hirsch since its entry in 2006.
“In addition, given the excellent geographical location of the sites in combination with the experienced workforce, we expect positive synergy effects for the packaging division,” Kogler added.
Hirsch Porozell also operates three plants in Hungary and two in Poland and one at Glanegg, Austria. The group also owns the Polyform business it acquired in Slovakia. The parent group's EPS product applications cover packaging, shape-molded parts, building insulation, modular boards for under floor heating, and its "Thermozell'"lightweight concrete products.
The group, based at Glanegg in Austria, is set to announce its first half 2016-17 year results this November.