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MOSCOW (MRC) -- Ferro Corporation has
signed a definitive agreement with the shareholders of Barcelona-based Nubiola
Pigmentos to acquire 100% of the equity of Nubiola, on a cash-free and debt-free
basis, for EUR146 million, the company announced.
Nubiola is among the
worldwide producers of specialty inorganic pigments and the among the world’s
largest producers of Ultramarine Blue, a high-value pigment for plastics and
construction industries due to its durability, unique color attributes and its
whitening capability. Based on 2014 EBITDA, excluding expected transaction
synergies, the acquisition purchase price represents a transaction multiple of
approximately 7X. The transaction will be funded with excess cash and a draw on
the Company’s existing revolving credit facility. The transaction is expected to
close within the next 60 days, subject to customary closing
conditions.
Other products of Nubiola include specialty Iron Oxides,
Chrome Oxide Greens and Corrosion Inhibitors. Nubiola generated 2014 annual
sales of $119 million, based on the current euro exchange rate, and achieved
compound annual growth of 4.1% over the last three years. The 101-year-old
family-owned company employs approximately 750 people, including temporary
employees, and has production facilities in Spain, Colombia, Romania, and India
and a joint venture in China. Nubiola sells into more than 85 countries. The
majority of Nubiola’s customers serve the plastics and construction
industries.
Commenting on the proposed transaction, Peter Thomas,
Chairman, President and CEO of Ferro Corporation, said, "Nubiola is an excellent
strategic fit with Ferro, as we strengthen our position as a global color
solutions provider. The acquisition will significantly expand our product
portfolio and geographic footprint and more than triple the size of our
addressable market in inorganic pigments to greater than $1 billion. Nubiola
will bring technology leadership on a global scale in Ultramarine Blue, along
with a range of other high-value pigment and corrosion inhibitor product
lines."
As MRC informed earlier, in 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.
Ferro
provides manufacturers cars, containers and packaging, building and
industrial products, household furnishings, personal electronics to medical
devices. |
