News

Merger with production market leader ECO EURO DOORS to follow, creating a consolidated regional player

• ROCA Industry, the first industrial holding in Romania, specialized in the production of construction materials, listed on the main BVB market under the symbol ROC1, has acquired the additional 30% stake in Workshop Doors’ share capital.
• The initial 70% stake in Workshop Doors’ share capital was acquired by ROCA Industry in February 2024
• Workshop Doors will merge with ECO EURO DOORS, the production market leader in the residential door segment, part of ROCA Industry portfolio since 2022, to create a unique, stronger and more stable company at national and regional level

Bucharest, October 16, 2024 - ROCA Industry, the industrial holding for construction materials majority-owned by private equity firm ROCA Investments, announces the full acquisition of Workshop Doors through the purchase of an additional 30% stake in the company's share capital. The company entered ROCA Industry's portfolio in February 2024 with the acquisition of the initial 70% stake.

Workshop Doors is the second largest manufacturer in the interior door market in the region, with two production facilities in Reghin and Petelea. It is ROCA Industry's second investment in this market, the first being ECO EURO DOORS, the largest Romanian manufacturer of doors for residential construction, fully acquired by ROCA Industry in 2022.

In the coming period, ROCA Industry intends to merge the two companies and launch a single new local brand with international validity, thus creating a strong player in the Romanian interior door market, with the aim to transform it into a regional leader. The new company resulting from the merger will have a significant increase in production capacity, diversified ranges with new and competitive products, covering all price segments and ensuring the most varied product offering available on the Romanian market.

"We aim to transform successful Romanian brands into regional champions and consolidate the market, and the holding model under which we operate provides stability to our companies in the face of industry fluctuations. For this segment, we are dealing with a highly granularized market of local producers, dominated by low-quality exports. From the top two players in the Romanian residential construction doors market, ROCA Industry will create a single strong, visible company with regional potential. The full acquisition of Workshop Doors' share capital brings us one step closer to this goal. We are already reporting very good results due to the synergies between the two companies, and we estimate that the merger will significantly accelerate the growth process," states Ionuț Bindea, CEO of ROCA Industry.

Currently, Workshop Doors both contributes to and benefits from the synergies generated alongside ECO EURO DOORS in terms of procurement. Additionally, it is evaluating optimization solutions for logistics, considering that both Workshop Doors factories and the ECO EURO DOORS factory are located very close to each other: two are in Reghin, and the third location is in Petelea, 6 km from Reghin. The synergies with ECO EURO DOORS have already achieved significant savings in the first half of 2024, and Workshop Doors is in a strong position to capitalize on market opportunities.

At the holding level, according to IFRS financial results, the two companies in the process of merging reported a turnover of 52.7 million RON for H1 2024 (ECO EURO DOORS 26.9 million RON, Workshop Doors 25.8 million RON). EBITDA amounted to 13.1 million RON in H1 (ECO EURO DOORS 2.9 million RON, Workshop Doors 10.2 million RON), thus marking a significant increase in EBITDA in the residential doors segment.

The consolidation of acquisitions has led to a reduction in raw material costs, and logistics optimization is estimated to bring additional savings in transport costs by the end of the year.

For both merging companies, the next steps aim to diversify sales channels and product portfolios, including in foreign markets, as well as introducing the concept of collections to target multiple market segments.

ECO EURO DOORS products are distributed nationally through DIY retailers, as well as through other specialized retailers and distributors. For Workshop Doors, which has an expanded portfolio of doors, delivery of wall panels to one of the country's DIY store chains is planned from Q3 2024.

For both merging companies ROCA Industry has planned investments in equipment and the implementation of an ERP system for operational efficiency and better resource management. After the merger is completed, the resulting new company will undergo a branding process, which will amplify its visibility in the local and international markets.

WORKSHOP DOORS, a company active since 2009, headquartered in Petelea, Mureș County, owns 2 factories in Reghin and Petelea, and exports a considerable percentage of its own production. The company had 132 employees at the end of 2023.

ECO EURO DOORS is the Romanian manufacturer of doors for residential constructions with the largest production capacity in Romania, part of the ROCA Industry holding portfolio since 2022. With 219 employees and 29 years of experience in the construction materials market, it mainly produces interior doors at its high-performance factory in Reghin.

ROCA Industry Holding owns, directly and indirectly, a number of 9 players with a significant presence on the construction market: BICO Industries (the first and largest national producer of fiberglass mesh and the only domestic producer of fiberglass reinforcement), EVOLOR (one of the largest players in the paint and varnish production industry), ECO EURO DOORS (the largest Romanian manufacturer of doors for residential construction), WORKSHOP DOORS (the second largest Romanian manufacturer of doors for residential construction), DIAL (manufacturer of metal wire products), ELECTROPLAST (one of the leading manufacturers of electrical cables), as well as fiberglass manufacturers Terra, Europlas and Iranga, through BICO Industries.