Ferro Acquires Turkey-Based Color and Glass Coating Products Distributor
Ferro Corp. recently announced that it has purchased 100% of the equity of privately-held Istanbul-based Ferer Dis Ticaret Ve Kimyasallar Anonim Sirketi A.S. for approximately $9 million in cash, on a cash-free and debt-free basis, subject to working capital and other adjustments. The transaction will be funded with excess cash and a draw on Ferro’s revolving credit facility. Ferro estimates that, in 2016, the acquisition will generate incremental sales of approximately $3 million and incremental adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $2.0 million.
Ferer is a distributor in Turkey of Ferro color and glass coating products and also provides customized, blended products and technical support primarily for the glass industry. Ferer’s primary focus is on servicing manufacturers of automotive, flat, and container glass, as well as non-tile ceramic applications, including dinnerware, stoneware and porcelain. Ferer also distributes pigments into the paint and plastics industries. Among other activities, Ferer provides local operational capabilities to produce and distribute customized paste and powder products from intermediates supplied by Ferro. Ferer recently opened a new blending, mixing and pasting plant that is expected to significantly expand production and distribution capabilities.
“The acquisition of Ferer advances our strategy to invest in higher-growth opportunities and to expand sales in this fast-growing region,” said Peter Thomas, chairman, president and CEO of Ferro. “The acquisition adds to our existing presence in Turkey and enables us to serve our customers more directly and effectively. The new Ferer plant expands our capabilities to produce customized products and color solutions, and will serve as a platform to build a broader marketing and customer support infrastructure. The Ferer management team have been valued partners of Ferro over the past 17 years. They have built a company that is well-known and respected in the glass market in Turkey. We look forward to working with the Ferer team to build on that foundation and to accelerate our growth in the region.”
The acquisition of Ferer is the third step Ferro has taken in the past 18 months to strengthen its position in the Turkey market. In July 2014, Ferro acquired assets of a reseller of Ferro porcelain enamel products in Turkey, providing a commercial base for direct marketing and sales opportunities. In November 2015, Ferro completed the acquisition of Egypt-based tile coatings manufacturer Al Salomi for Frit and Glazes, adding production capacity to meet current and future demand in Turkey, as well as other markets in the Middle East and North Africa. Now, the Ferer acquisition brings Ferro an operational presence in Turkey focused on the glass market.
For more information, visit www.ferro.com.