On June 29th, 2007, the Warsaw District Court registered the merger of Eurofilms S.A., Poland’s leading manufacturer of stretch films and PVC thermoshrink and BOPP films and PET tapes distributor with the Company’s majority shareholder - ERGIS S.A. - Poland’s largest and Central and Eastern Europe’s leading PVC products manufacturer (films, compounds, wallpapers, wall panelling and windowsills). The merger was voted unanimously by the shareholders of both Eurofilms and ERGIS at the respective GMSs in May. Today is the first day of the Warsaw Stock Exchange listing one of the largest plastics processing companies in Central and Eastern Europe, with total annual revenue surpassing PLN 390 million.
The new entity is operating under the name ERGIS-EUROFILMS S.A. After the merger, the shareholders structure of the company is: Finergis Investments Ltd. - 65.87%, former shareholders of Baad, acquired by ERGIS S.A. early in 2007 - 13.66%, remaining stock market shareholders - 20.47%.
The merged companies' strategic development objective is strengthening their top position in films manufacturing and the position of Central and Eastern Europe's leading plastics processing company.
ERGIS-EUROFILMS S.A.'s further development is going to take the form of both acquisitions of companies from the plastics processing and packaging industry, and of organic growth: investing in new production lines for fields the Company specializes in, allowing it to broaden its product offer.
This month a new PET tapes production line, with a capacity of 4.8 thousand tons per year, will be launched. The Company also plans on purchasing a blown PE stretch film production line, which is expected to commence work in the first quarter of 2008. The anticipated production capacity of the line is 3.5 thousand tons annually, while the line's cost is estimated at PLN 15.7 million.
"I am extremely glad that the merging process was this flawless and fast, with full approval of both companies' shareholders. The consolidated entity, ERGIS-EUROFILMS S.A., is the largest participant of the plastics processing market in the Central European region; and this market is bound to develop substantially in the near future. We are looking to fortify our position as a leader, while continuing to develop both organically (through working on systematically enhancing our product offer and production capacity, among others), and through acquisitions," says Tadeusz Nowicki, President of the Management Board of ERGIS-EUROFILMS S.A.
Additional information is available from:
phone: +48 0604 159 103, +48 0604 159 159
phone: +48 (22) 625 71 40, +48 0501 16 88 07
Eurofilms S.A. is Poland's second largest manufacturer of stretch films (tensile film, used e.g. for wrapping loads on pallets), PVC thermoshrink films (used e.g. for foodstuffs packaging), and distributor of polypropylene BOPP film (used mainly for packaging manufacturing) and PET tapes (used for fastening medium heavy and heavy products and loads). The company's production capacity reaches 27 thousand tons per year for stretch film, 1.4 thousand tons for PVC thermoshrink film and 4.8 thousand tons for PET tapes (an investment in progress). In 2006 the Company earned PLN 128.79 million in sales revenue and net profit at PLN 5.2 million. Eurofilms employs over 100 people. Additional information available also at www.eurofilms.eu
Information on ERGIS S.A.
ERGIS S.A. is Poland's largest and one of Central and Eastern Europe's largest manufacturers of PVC products: films, compounds, wallpapers, wall panelling, and windowsills. The company's offer includes films laminated with a layer of film, paper, woven and non-woven fabric, etc.; printed films, insulation films, packaging films (including films for packaging pharmaceuticals), bus floor covering, compounds for cable manufacturing, interior and exterior wall panels, windowsills, joint-filler tapes, artificial leather, coated fabrics, tablecloths, and vinyl and paper wallpapers. This April, ERGIS acquired 100% of shares of BAAD Sp. z o.o. - manufacturer of elastic, laminated foodstuffs packaging. Total sales revenue for Ergis Group (without Eurofilms) and Baad for 2006 reached almost PLN 220 million, and net profit - PLN 9 million. ERGIS employs over 550 people. Additional information on the company is also available at www.ergis.eu.