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Ferro announces sale of Its North America-based polymer additives business

December 23/2014

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 companys four plants in the United States, its manufacturing operation in Newport, United Kingdom, certain assets at the Companys 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 companys 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. 


mrcplast.com
Author:Margaret Volkova
Tags:adhesives, construction, paints and coatings, Ferro Corporation, USA.
Category:General News
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