Cyprus-based Eureka Group has acquired Interstar Chim company, the manufacturer of the Rivex detergents and of the carpet cleaning products Biocarpet, and one of the leading players on the house care products market in Romania.
The deal amounts to 8 million dollars and saw Eureka Group take over 99.98% in Interstar Chim from Cyprus-based Interstar Household Chemical.
Interstar''s production centre is located in Bucharest, where the company owns an over 7,000 square metre factory, which supplies the Romanian and the Bulgarian, Ukrainian, Russian, Moldovan and Macedonian markets.
Eureka is one of the most important regional companies in the home care products industry, accounting for significant market shares in both Greece and Cyprus. It exports to some 30 other countries.
This is the first strategic acquisition in the sector of consumer goods in Romania, dominated by multinational groups like Henkel, Unilever, Procter & Gamble and Johnson Wax.
"Interstar will consolidate its position on the market through investments, synergies and economies of scale - that is distributing the same costs over a larger output, which will stem from its integration into the Eureka Group. We will focus on growth an development by introduction of new product ranges," said Carmen Oancea, Interstar Chim''s marketing manager.
The deal may bring powerful changes on the fiercely disputed segment of home care products, which has seen a fast-paced growth over the last twelve months.
Interstar''s brands on this segment are Biocarpet (carpet cleaning products), Rivex (universal cleaning products, dishwashing and laundry detergents and bleaches), Snow (laundry detergent, bleach and fabric conditioner), Trim (dishwashing detergents, cleaning accessories like sponges and gloves), Peak (toilet cleaning products), Wipe Out (furniture care products), and Mr. Ages (insecticides).
Oancea added that the company would soon make more investments in increasing its production capacity at the factory in Bucharest and would begin exports to Greece and Cyprus.
Interstar Chim posted sales growth of some 30% in euros in the first nine months of the year compared with the same time in 2004. Its turnover last year was 10 million euros.
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