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MOSCOW (MRC) -- Ferro Corporation
has announced that it has completed the sale of the majority of the assets
of its Polymer Additives business to Polymer Additives, Inc., a wholly owned
portfolio company of H.I.G. Capital, LLC, for approximately USD154 million in
cash, subject to customary working capital and other purchase price adjustments,
reported the company on its site.
Assets included in the transaction are
the company’s four plants in the United States, its manufacturing operation in
Newport, United Kingdom, certain assets at the Company’s former Baton Rouge,
Louisiana plant and its polymer additives research and development lab in
Independence, Ohio. The sold US manufacturing sites are located in the following
communities: Bridgeport, New Jersey; Cleveland, Ohio; Fort Worth, Texas; Walton
Hills, Ohio.
The company estimates that cash proceeds, net of cash income
taxes and fees, from the sale will be approximately USD143 million, which it
plans to use primarily to repay debt under its revolving credit facility and to
fund strategic growth opportunities. The asset sale closed concurrently with the
signing of the asset purchase agreement.
Excluded from this transaction
are the company’s Europe-based Polymer Additives assets, including the Antwerp,
Belgium dibenzoates manufacturing assets, and related Polymer Additives European
headquarters and lab facilities. These assets are currently being
marketed.
Peter Thomas, Chairman, President and Chief Executive Officer
of Ferro, said, "The transaction announced today marks a further step in our
plan to harvest the value of assets that are no longer core to our growth
strategy and focus resources on our Performance Materials product lines. Earlier
this year, we completed the sale of our Specialty Plastics business for USD91
million, and we remain committed to the marketing process for our European
Polymer Additives assets. Our strategic vision is to become the premier global
functional coatings and color solutions company, building on our core
competencies in glass and color technologies. These divestitures align our
portfolio with that vision and provide liquidity for strategic growth
activities. We believe that continued focus on our core businesses will allow us
to deliver increased cash flow and greater shareholder value."
As MRC reported
previously, in early December, Ferro Corporation 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 .
H.I.G.is a leading
global private equity and alternative assets investment firm with more than
USD17 billion of equity capital under management.
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. |
