Sector News

Ferro acquires distributor in Turkey

January 6, 2016
Chemical Value Chain

Ferro Corporation announced today that it has purchased 100% of the equity of privately held Istanbul-based Ferer Dis Ticaret Ve Kimyasallar Anonim Sirketi A.S. for approximately $9.0 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 the Company’s revolving credit facility.

The acquisition of Ferer is the third step Ferro has taken in the past 18 months to strengthen its position in the fast-growing 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.

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 glasses 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.

Ferro estimates that in 2016 the acquisition will generate incremental sales of approximately $3 million and incremental adjusted EBITDA of approximately $2.0 million.

Commenting on the proposed transaction, Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, “The acquisition of Ferer advances our strategy to invest in higher-growth opportunities and to expand sales in this fast-growing region. 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.”

Mr. Thomas concluded, “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.”

Source: Ferro Corporation

comments closed

Related News

October 2, 2022

Trinseo announces potential closure of Boehlen, Germany Styrene Plant

Chemical Value Chain

Trinseo (NYSE: TSE), a specialty material solutions provider, announced it has initiated an information and consultation process with the Works Council of Trinseo Deutschland GmbH regarding the potential closure of its styrene monomer production site in Boehlen, Germany.

October 2, 2022

Celeste Mastin appointed H.B. Fuller President and CEO, succeeding Jim Owens upon his retirement

Chemical Value Chain

H.B. Fuller Company announced that Celeste Mastin, Executive Vice President and Chief Operating Officer, will succeed Jim Owens as H.B. Fuller’s President and Chief Executive Officer, effective December 4, 2022. Upon assuming the role, Mastin will also join the Company’s Board of Directors, replacing Owens, who will be retiring.

October 2, 2022

LyondellBasell realigns executive team, forms circular and low-carbon solutions business

Chemical Value Chain

New LyondellBasell CEO Peter Vanacker, who joined the company from Neste in May, today named his senior executive team and outlined organizational changes, including creation of a circular and low-carbon solutions business. All changes will be effective 1 October.