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US Ferro completes acquisition of Egyptian company

November 24/2015

MOSCOW (MRC) -- Performance materials supplier Ferro Corp. of Mayfield Heights said it has completed the acquisition of Egypt-based tile coatings manufacturer Al Salomi for Frit and Glazes for about USD36 million, including the assumption of debt, said Crainscleveland.

The company had announced the deal on Sept. 3.

Ferro described Al Salomi as one of the leading manufacturers of frits and glazes in the Middle East and North Africa. Al Salomis 5,600-square-meter plant in Suez, Egypt, "is expected to be one of Ferros lowest-cost frit production sites," Ferro said in a news release.

Current production capacity is 55,000 metric tons per year. An additional two lines, or 12,000 metric tons per year, of new tile coatings capacity is under construction and due to be operational in early 2016, Ferro said. The plant, which will be Ferros second frit production facility in Egypt, includes land and infrastructure assets to support expected growth, according to the release.

Ferro said it expects the transaction to add to adjusted diluted earnings by 3 cents to 6 cents in 2016.

Peter Thomas, chairman, president and CEO of Ferro, said the deal "will provide much-needed production capacity, as we have been running at or near capacity levels at our existing plants in Spain and Egypt for some time."

He added, "Despite current weakness, the (Middle East and North Africa) region remains a very attractive, growing market for tile and porcelain enamel products. This acquisition, combined with our investments in Turkey, strengthens our position as a market leader."

As MRC informed earlier, A. Schulman, Inc. in 2014 announced that it had 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 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 4,710 employees globally and reported 2014 sales of USD1.1 billion.
Author:Anna Larionova
Tags:petrochemistry, coatings, adhesives, construction, A.Schulman, Ferro Corporation.
Category:General News
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