Ferro Acquires Dip-Tech
Ferro paid $60 million for Dip-Tech, which is a privately held company headquartered in Kfar Saba, Israel.
Ferro Corp. recently announced that it has acquired Dip-Tech Ltd., a provider of digital printing solutions for glass coatings. Ferro paid $60 million (excluding customary adjustments and fees) for Dip-Tech, which is a privately held company headquartered in Kfar Saba, Israel. The company expects the transaction to be accretive to earnings in 2018 based on year-one synergy-adjusted EBITDA, which is forecasted to be in a range of $6 million to $7 million. The transaction was funded through excess cash and borrowings under Ferro’s existing revolving credit facility.
“This acquisition aligns very well with Ferro’s next phase of our value creation strategy: Dynamic Innovation and Optimization,” said Peter Thomas, chairman, president and CEO of Ferro. “It equips us with a fully commercialized and patent-protected digital glass printing business that generates gross margins at the high end of our Performance Colors & Glass portfolio. Dip-Tech’s digital glass printing technology is attracting customers because of the high-precision, multicolored effects possible with durable glass-based inks, along with greater production flexibility and efficiency.”
According to Ferro, its commercial presence in the global appliance, architectural and automotive glass markets provides opportunities for introducing Dip-Tech’s digital technology and for expanding sales. Ferro believes that its strength in developing inks and related raw materials, together with Dip-Tech’s technology, IP and established global success, provide numerous operating and commercial synergies.
For more information, visit www.ferro.com or www.dip-tech.com.