Ferro Acquires Glass Coatings Manufacturer Pinturas Benicarló
Ferro has acquired 100% of the equity of privately held Pinturas for €15 million (approximately $16.7 million) in cash.
Ferro Corp. announced recently that it has completed its acquisition of Pinturas Benicarló, S.L., based in Benicarló, Spain. Ferro has acquired 100% of the equity of privately held Pinturas for €15 million (approximately $16.7 million) in cash, on a cash- and debt-free basis, subject to working capital and other adjustments. The acquisition reportedly adds new waterborne coatings technology to Ferro’s Performance Colors and Glass segment, and provides Ferro with an entry into the painted glass container market.
Pinturas produces waterborne industrial paints and specializes in the niche sector of organic paints for application on glass substrates. The primary use for Pinturas’ paints is for the decoration of container glasses for perfume and cosmetics, food and beverage containers, and other consumer product applications. Pinturas’ sales for 2016 are expected to be approximately €7.5 million (~ $8.4 million), and Ferro expects that the acquisition will be accretive to 2016 adjusted earnings by approximately $0.02 per diluted share, excluding the impact of purchase accounting adjustments. With the acquisition, Ferro is increasing its full-year 2016 adjusted earnings guidance to $0.95-1.00 per diluted share.
“Pinturas is an excellent strategic fit with our Performance Colors and Glass Segment,” said Peter Thomas, chairman, president and CEO. “Pinturas is a market leader in the highly fragmented niche segment for organic coatings for container glass. Total sales of organic coatings for container glass are estimated to be approximately $100 million annually. We believe the combination of Pinturas’ product offering and our significant market position in glass coatings and broad geographic reach will be highly synergistic. Pinturas and Ferro share similar market approaches. We are close to our customers and take pride in our ability to quickly and effectively service their needs by providing highly formulated products and technical solutions. We are very pleased to add Pinturas to the Ferro portfolio and are looking forward to working with the Pinturas management team to expand its market reach and continue its tradition of market success.”