Ferro Corporation completes Vetriceramici acquisition

MOSCOW (MRC) -- Ferro Corporation has announced today that it has completed the acquisition of tile coating manufacturer Vetriceramici S.p.A. for EUR83 million (approximately USD104 million), subject to customary working capital and other purchase price adjustments, reported the company on its site.

Vetriceramici was owned by Milan, Italy-based Private Equity Funds’ Management Company Star Capital SGR S.p.A. and other related minority owners. The acquisition was previously announced on September 21, 2014.

"Vetriceramici is an excellent strategic fit with our existing tile coatings business and our performance colors and glass business".

The all-cash transaction was funded with excess cash and borrowings under the company’s existing revolving credit facility. It is expected to be accretive to Ferro’s adjusted diluted earnings per share by USD0.12 to USD0.14 in 2015.

Vetriceramici, based in Casola Valsenio, Italy, is a leading supplier of ceramic coatings to high-end tile manufacturers. It has manufacturing facilities in Italy and Mexico, a mixing plant in Poland, and research and development and sales offices in Italy and Turkey. The product line includes high-value, specialty frits and grits (finely-milled frits), glazes, digital inks and other specialized tile coatings, and forehearth color solutions.

"Vetriceramici is an excellent strategic fit with our existing tile coatings business and our performance colors and glass business," said Peter Thomas, Chairman, President and CEO of Ferro Corporation. "The acquisition is in line with our strategy to focus resources on our glass-based coatings businesses, adds to our frit production capacity and expands our geographic footprint. We are excited about bringing these two strong tile coatings businesses together and are eager to assist in accelerating the globalization of the Vetriceramici brand. We look forward to working with the team at Vetriceramici to build on their impressive accomplishments to date."

As MRC informed earlier, in July 2014, A. Schulman, Inc. completed its acquisition of a selected majority of the assets of the Specialty Plastics business segment from Ferro Corporation for USD91 million in cash. The acquisition includes four facilities located in the United States as well as operations in Spain.

Ferro Corporation is a leading global supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials. Ferro products are sold into the building and construction, automotive, appliances, electronics, household furnishings, and industrial products markets. Headquartered in Mayfield Heights, Ohio, the company has approximately 4,190 employees globally.

Vetriceramici S.p.A. designs, develops, manufactures, and supplies special products for the ceramics industry. Vetriceramici produces fusion colored grains, technical grains, matte colored micro-grains, frits, double charge products, ceramic glazes, and inks for digital printing. Its products are used in various high-value applications in the ceramic tile and color and glass markets. The company, based in Casola Valsenio, Italy, was founded in 1987 and employs over 200 people.
MRC

Styron reduces prices of PS and copolymers in Europe

MOSCOW (MRC) -- Styron, the global materials company and manufacturer of plastics, latex and rubber, and its affiliate companies in Europe have announced price decreases for all polystyrene (PS) and copolymer grades, reported the company on its site.

Effective immediately, or as existing contract terms allow, the December contract and spot prices for the products listed below will be reduced, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - by EUR110/tonne;
- MAGNUM ABS resins - by EUR80/tonne;
- TYRIL SAN resins - by EUR90/tonne.

As MRC informed earlier, Styron had increased prices of all polystyrene (PS) grades last month. Thus, November contract and spot prices for the products listed below rose, as follows:

- STYRON general purpose polystyrene grades (GPPS), STYRON and STYRON A-TECH high impact polystyrene grades (HIPS) - each by EUR10/tonne;
- the prices for MAGNUM ABS resins and TYRIL SAN resins rolled over from October.

Styron is a leading global materials company and manufacturer of plastics, latex and rubber, dedicated to collaborating with customers to deliver innovative and sustainable solutions. StyronпїЅs technology is used by customers in industries such as home appliances, automotive, building & construction, carpet, consumer electronics, consumer goods, electrical & lighting, medical, packaging, paper & paperboard, rubber goods and tires. Styron had approximately USD5.3 billion in revenue in 2013, with 19 manufacturing sites around the world.
MRC

Russian HDPE market: the results of November

MOSCOW (MRC) - Demand for high density polyethylene (HDPE) in Russia seasonally weakened in November, however, this factor did not lead to price drop. Supply remained tight in injection moulding HDPE market, but in the near future the situation will change, according to ICIS-MRC Price Report.

Seasonal factor last month led to a reduction in demand for HDPE in pipe and film consumption sectors. However, because of lower production rates and weaker imports allowed producers to keep HDPE prices at the level of October. Supply of blow moulding HDPE was good in November on the back of the significant growth supply from Kazanorgsintez.

The shortage was still felt in the market on injection moulding PE because of tight supply from local producers; prices for imported material in the late November exceeded the level of Rb100,000/tonne. Demand for pipe HDPE seasonally weakened in November; some Russian producers said they would reduce the output of the material. As a result, these two factors balanced the market and helped to keep the October price level in November.

Spot deals for PE 100 were done in the range of Rb80 000-82 500/tonne FCA, including VAT. Many market participants reported a weaker demand for film HDPE in November.

The offers for Gazprom neftekhim Salavat appeared in the market, at the same time Kazanorgsintez reduced the offer of PE in the domestic market. Prices for HDPE were steady in November, with deals for Russian PE done in the range of Rb80 500-83 000/tonne FCA, including VAT.

Middle Eastern HDPE was offered in the range of Rb85,000-87,000/tonne, including VAT and delivery.

Russian producers resumed supply of blow moulding HDPE in November. The first was Kazanorgsintez in the early November, and the second - Gazprom neftekhim Salavat in the late November. November prices for blow moulding HDPE were in the range of Rb80,500-83,000/tonne FCA, including VAT.

Supply for injection moulding HDPE remained tight, as Russian producers did not resume supply in the domestic market. Converters had to buy imported material, which due to the rouble devaluation reached Rb105,000/tonne FAC, including VAT.

Gazprom neftekhim Salavat this week offered injection moulding HDPE in a quite wide range of Rb82,000-88,000/tonne FCA, including VAT.
MRC

BASF launches FCC catalysts testing and research laboratory in Germany

MOSCOW (MRC) -- BASF’s Refining Catalysts business has launched a new fluid catalytic cracking (FCC) catalysts testing and research laboratory at the hte GmbH (hte) site in Heidelberg, Germany, as per the company's press release.

hte is a wholly owned subsidiary of BASF SE and a leading provider of high throughput technology and services for enhancing research and development productivity.

The new laboratory will provide physical and chemical analyses and characterizations of hydrocarbons and FCC catalysts, fine particles and slurries. It will also develop advanced refining catalysts test methods, complementing BASF’s existing FCC catalysts laboratory in Iselin, New Jersey, USA.

"Through this expansion of our FCC catalysts research activities, we are focused on developing world-class testing methodologies and providing significantly improved turnaround times for the analytical services we provide our customers in the Europe, Middle East and Africa (EMEA) region," said Detlef Ruff, Senior Vice President, Process Catalysts & Technologies for BASF.

As MRC wrote previously, in October 2014, BASF inaugurated its expanded mobile emissions catalysts manufacturing operation in Shanghai, China, further strengthening the company’s regional presence and its position as a leading supplier to the automotive industry.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
MRC

Solvay completes divestment of Eco Services

MOSCOW (MRC) -- Solvay has completed the divestment of its U.S.-based sulfuric acid virgin production and regeneration business Eco Services to affiliates of CCMP Capital Advisors LLC., said the producer in its press release.

The divestment, at an enterprise value of USD 890 million or just over 8,0 x adjusted EBITDA for the last twelve months ending June 30th, 2014, is part of the Group’s transformation to achieve higher growth and greater returns.

Solvay announced in July the agreement with CCMP Capital, which is specialized in middle market buyouts and growth equity investments in North America and Europe.

Eco Services is the U.S. leader in technologies that sustainably regenerate sulphuric acid for oil refineries and generated sales of EUR288 million in 2013 with more than 500 employees.

Solvay S.A. is a Belgian chemical company founded in 1863, with its head office in Neder-Over-Heembeek, Brussels, Belgium. The company has diversified into two major sectors of activity: chemicals and plastics. Solvay supplies over 1500 products across 35 brands of high-performance polymers – fluoropolymers, fluoroelastomers, fluorinated fluids, semi-aromatic polyamides, sulfone polymers, aromatic ultra polymers, high-barrier polymers and cross-linked high-performance compounds.
MRC