Following a public tender called by the government's centre for enterprise restructuring and privatisation, CERP, in which VIS Promotex was named the best bidder, the company signed a deal to buy the foundry and fulfilled all of its obligations, the Varazdin-based VIS Promotex said in a statement e-mailed to SeeNews.
The company did not disclose the value of the deal but according to information posted on the website of CERP, the government agency decided on September 24 to accept a binding offer by VIS Promotex to acquire Lipovica for 16 million kuna ($2.5 million/2.1 million euro) that outbid three other valid offers.
“Both companies export over 80% of their products and together they will achieve synergy effects in terms of sales, production and supply in order to boost production and exports,“ VIS Promotex said.
Lipovica exports its products to more than 10 markets, while VIS has approximately 40 export markets.
VIS expects synergy effects in production of aluminium parts for its own manufacture of parasols for exports. Moreover, Lipovica expects its output of aluminium parts for automobiles and electrical equipment to develop significantly, according to the statement.
VIS was set up in 1929, while Lipovica has more than 40 years of experience in the production of aluminium castings.
Depending on seasonal employment, VIS has some 200 employees and Lipovica some 170. Lipovica is located in Popovaca, central Croatia.