OK
The Universal Selection Source:
Coatings Ingredients
Industry News

Ferro Expands its Footprint to Supply Functional Coatings & Color Solutions in Turkey

Published on 2014-07-04. Author : SpecialChem

CLEVELAND -- Ferro Corporation has announced further progress implementing its value creating initiatives with the completion of the previously announced sale of substantially all of the assets in its Specialty Plastics business to A. Schulman, Inc. for $91 million in cash. Cash proceeds, net of cash taxes and fees, will be approximately $88 million, which Ferro plans to use primarily to reduce debt.

Additionally, Ferro is progressing on other strategic initiatives. The refinancing of its current debt and efforts to sell its Polymer Additives business, which were announced in June, are advancing as planned. In addition, consistent with its strategy to invest in higher growth opportunities, the Company has acquired certain commercial assets of a reseller of Ferro porcelain enamel products in Turkey in order to enhance direct marketing and sales opportunities. Ferro porcelain enamel sales to this entity in 2013 were approximately $6 million. Based on this level of business, Ferro estimates that the acquisition will generate approximately $1.5 million of incremental sales and gross profit. Terms of the transaction were not disclosed. The investment in Turkey is a first step toward expanding sales in this fast-growing market.

Peter Thomas, Chairman, President and CEO of Ferro Corporation said, "The sale of the Specialty Plastics assets aligns with our objective of becoming a premier functional coatings and color solutions company and will provide liquidity for strategic growth opportunities. Looking ahead to growth, the asset acquisition in Turkey provides a base to support our commercial operations in that important region. It is a small step in our larger strategic plan to focus resources on our glass-based coatings businesses and expand into higher growth markets with a full complement of our frit-based products and higher value tile and porcelain enamel products, including digital inks. We are excited about the growth prospect associated with our core strategic platform and are actively pursuing multiple opportunities."

About Ferro Corporation

Ferro Corporation is one of the leading global suppliers 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 4,020 employees globally and reported 2013 sales of $1.6 billion.

Source: Ferro Corporation


Halcyon Group 3rd R&D Innovation Summit
Back to Top