PGO purchases Kopex

Polish foundry group Polska Grupa Odlewnicza (PGO) has acquired 100 percent of Kopex Foundry, paying a total of PLN 7 million, Polish Foundry stated in a press release on Thursday. PGO indicated that it felt the move would allow it to expand its operations. “As a result of the transaction, PGO [has been] given the opportunity to expand its market and increase production capacity, as well as improve efficiency through the use of synergies in many areas of activity,” read the release. The price for the shares will be paid in two parts: PLN 1.4 million on the date of signature of the contract and PLN 5.6 million by April 30, 2017. In addition, as part of the share purchase agreement, PGO will repay Kopex’s obligations under loan agreements concluded with the latter, for the total amount of the principal amount of PLN 10.3 million, together with interest, also due by April 30. Kopex Foundry specializes in the production of steel and iron castings for construction machinery, lifting and transport, mining, metallurgy, cement, power and marine industry and agricultural machinery.