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MOSCOW (MRC) -- Ferro
Corporation announced entering into an agreement to acquire Cappelle
Pigments NV and the acquisition of certain assets of Delta Performance
Products, for aggregate consideration of approximately USD60 million, said Businesswire.
Sales
for the two businesses in 2016 are estimated to be approximately USD76 million
in the aggregate and adjusted EBITDA in 2016 is expected to be approximately
USD11 million. Based on estimated 2016 adjusted EBITDA, excluding expected
synergies, the purchase price of the two businesses represents a combined
transaction multiple of approximately 5.6X.
On October 14, 2016, Ferro
signed a definitive agreement to acquire 100% of the stock of Belgium-based
Cappelle Pigments for EUR50.5 million (approximately USD56 million) on a
cash-free and debt-free basis. The transaction is expected to close by year end,
subject to customary closing conditions, including regulatory
review.
Cappelle is a 125-year-old, privately held company that produces
specialty, high-performance inorganic and organic pigments used in coatings,
inks and plastics and sells its products in more than 75 countries. Cappelle
specializes in weather-, heat-, and light-resistant organic pigments. The
company is also a market leader in certain inorganic pigments that complement
Ferro’s market leadership positions in Complex Inorganic Colored Pigments
(CICPs) and Ultramarine Blue pigments.
On August 1, 2016, Ferro purchased
certain assets of Delta Performance Products. This business produces customized
colorant blends that utilize Ferro’s CICPs for the concrete and outdoor
hardscape markets.
Peter Thomas, Chairman, President and CEO of Ferro
Corporation, said, "These acquisitions are great additions to our growing
Pigments business. Both fit extremely well into the strategy for our color
solutions businesses, and we are excited about the opportunities these assets
present to enhance shareholder value. Over the next 12 to 24 months, between the
two businesses, we expect to realize commercial and operating synergies of USD3
million to USD4 million.
As MRC informed earlier,
Ferro Corporation announced that it has signed a definitive agreement with the
shareholders of Egypt-based tile coatings manufacturer Al Salomi for Frit and
Glazes to acquire 100% of the equity of Al Salomi on a cash-free and debt-free
basis, for approximately USD39 million in cash, subject to working capital and
other customary adjustments.
Ferro Corporation is a leading global
functional coatings and color solutions company that supplies 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 4,900 employees globally and reported 2015 sales of USD1.1
billion.
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