Catarama merges companies to prepare for floatation

The Elvila Group held by businessman Viorel Catarama (photo) has started to merge its companies in view of a possible floatation on the Stock Exchange. “The strategic direction is to merge all the companies of the group. This will not occur instantly, but in time,” Viorel Catarama, Elvila chairman told ZIARUL FINANCIAR. Elvila SA has recently absorbed two of the biggest companies of the group, Elmoberom SA, which carries out manufacturing operations, and Elvian International, which is involved in trade, according to the data published by the company in the Official Gazette. Elvila, one of the leading players in the furniture industry in Romania, posted 74 million-euro revenues in the first seven months of the year, an increase of 4.9% from the same time last year. “Results in this period are driving full-year estimates up,” Catarama said. Early this year, Catarama had anticipated 125 million-dollar (101.5 million-euro) revenues for Elvila. The announcement of the company comes shortly after another two major players, Mobexpert and Silvarom, had revised their targets for this year downwards. “We expected a lower (domestic i.e.) furniture market growth for this period, which allowed us to increase estimates for the entire year after seven months,” Viorel Catarama went on. Elvila’s profit was 22.3% higher in this period, according to Catarama. Elvila budgeted 2.5 million dollars (approximately 2 million euros) profit for this year.