One of the biggest names in the car safety industry, the Swedish group Holmbergs Safety Systems, has established a production hub in Romania by acquiring Te-Rox Prod, a well-known European producer of covers and harness systems for child safety seats. The financial details of the agreement remain under wraps, but sources estimate the deal to be worth less than EUR 10 million. The news was first reported by profit.ro.
Holmbergs has a history of 80 years in the niche market of safety products and systems for child safety seats; it also makes products for other transportation niches, with factories in Europe, Hong Kong, the U.S. and China. The company’s sales currently exceed SEK 740 million. By establishing a production point in Romania, Holmbergs will relocate part of their production from Hungary and Lithuania.
Headquartered in Pașcani, Iași County, Te-Rox Prod was established in 2007 by Doina Cepalis with working capital of EUR 10,000 and 10 employees. The company’s main activity was the production of child safety seat covers and seat belts as a subcontractor for French Team Tex.
A year later, Cepalis terminated its contract with Team Tex and began exporting products under its own brand. Fast forward to today, and the company has production plants in Roman and Ruginoasa and in 2019 reported 722 employees, sales of EUR 30 million, and a net profit of RON 967,983.00 (~EUR 198,599).
The deal provides Holmbergs with the ability to serve its European customers with local and swift production. Furthermore, the sellers will become shareholders of Holmbergs and continue to operate the business.
Title image: The joint logo of Holmbergs Safety Systems and Te-Rox Prod. Image source: Holmbergs.