Ferro expands its pigments business with two acquisitions

Ohio-headquartered Ferro Corporation, a leading global functional coatings and colour solutions company that supplies technology-based performance materials, including glass-based coatings, pigments and colours, and polishing materials, has entered into an agreement to acquire Belgium-headquartered Cappelle Pigments NV, a producer specialty, high-performance inorganic and organic pigments used in coatings, inks and plastics; and the acquisition of certain assets of Delta Performance Products, a US producer of customised colourant blends, for aggregate consideration of approximately US$60 million.

Sales for the two businesses in 2016 are estimated to be approximately US$76 million in the aggregate and adjusted EBITDA in 2016 is expected to be approximately US$11 million.

With Cappelle Pigments, Ferro signed a definitive agreement to acquire 100% of the stock of Belgium-based Cappelle Pigments for EUR50.5 million (approximately US$56 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.

Peter Thomas, Chairman, President/CEO of Ferro Corporation, commented: “These acquisitions are great additions to our growing pigments business. Over the next 12 to 24 months, between the two businesses, we expect to realise commercial and operating synergies of US$3 million to US$4 million.”