Steilmann Bukarest, one of the top five companies on the textile market in Romania in terms of turnover, has been acquired by Miro Radici, Germany, in an international transaction. Miro Radici, an over 600 million-euro business, announced the takeover of the Steilmann group, which also has the biggest apparel chain in Romania (about 50 locations) operating under its name, according to the latest available data. The value of the transaction was not revealed.
Steilmann Bukarest is a business wherein businessman Romeo Pomponiu owns 49%, and Britta Holding BV registered in the Netherlands, whose manager is Ingrid Steilmann, owns the rest.
Steilmann Bukarest posted 30 million-euro turnover in 2005, an increase of 50% on the previous year, and net profit of more than 4 million euros.
When asked by ZIARUL FINANCIAR for comment on the deal, Romeo Pomponiu, who is also the general manager of the company, replied, "I'm not making any statements because the data regarding the transaction are confidential."
The representatives of Steilmann and Miro Radici had not provided any comment by the time the story was ready for print. Certain players on the textile market do not expect any short-term changes in the company's structure; the strategic decisions about the expansion or the downsizing of the business in Romania will not be made any sooner than one or two years. The company has 1,421 employees, and production facilities in Sighetu Marmatiei, Satu Mare, Craiova and Sibiu, according to the latest data available.
Like other companies in its line of business in Romania, most of Steilmann's production is done under outsourcing contracts and is exported. Miro Radici had held 50% in Steilmann since 2003; the sale of the company was necessary in order to avoid bankruptcy, Steilmann officials say.
Miro Radici announced it would keep the Steilmann brand on the market, as it is well-positioned on the Eastern European markets, as well.
The acquisition of the Steilmann Group enables Miro Radici's textile division to gain a foothold in the international textile industry.
Miro Radici Fashion, one of the units of the buyer, is an over 600 million-euro business a year.
After having bought Steilmann and its international representative offices, Miro Radici officials estimate turnover will overshoot the 1 billion-euro mark by the end of 2006.
"The Steilmann Group stands to benefit from Miro Radici.
"The company will assist Steilmann in its attempt to return to a top position in Germany and to continue development of Steilmann in Eastern Europe," Steilmann officials say. Miro Radici is part of the Miro Radici Group and was founded in Dortmund, Germany in 1994.
The companies that are part of the group include Radici Pietro Industries & Brands, a leading carpet maker and Miro Radici Textile & Energy, a synthetic thread manufacturer. This company is also present in Romania through YarNea, which it took over in 2000.
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