Ferro Corp. (from Ohio) to buy Italian company for $108 million

Ferro Corp. to buy Italian company for $108 million

Originally Published: September 22, 2014 8:43 AM  Modified: September 23, 2014 10:05 AM
Ferro Corp. (NYSE: FOE) of Mayfield Heights said it has agreed to buy Vetriceramici S.p.A., a Casola Valsenio, Italy-based supplier of ceramic coatings to high-end tile manufacturers, for about $108 million.

The sellers are Milan, Italy-based Private Equity Funds’ Management Company Star Capital SGR S.p.A., as well as two minority owners and founders Gianfranco Padovani and Sergio Zannoni.

Ferro, a supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials, said the acquisition will be funded with excess cash and a draw on the company’s existing revolving credit facility. It’s expected to close by Dec. 1, subject to customary closing conditions.

In a news release, Ferro said the transaction is expected to be accretive to earnings between 12 cents and 14 cents in 2015.

Vetriceramici operates manufacturing facilities in Italy and Mexico, a mixing plant in Poland and research and development and sales offices in Italy and Turkey. As of July, Vetriceramici had trailing 12-month sales of about 53 million euros, or about $68 million. Ferro said it has achieved compounded annual sales growth of 9.3% over the last three fiscal years.

Peter Thomas, chairman, president and CEO of Ferro Corp. said in the release that Vetriceramici is “an excellent strategic fit with our existing tile coatings business and our performance colors and glass business. The acquisition demonstrates our commitment to transforming Ferro into a more focused functional coatings and color solutions company.”

He said Vetriceramici improves Ferro’s product portfolio “by adding higher-value product offerings, enhances our technical capabilities with state-of-the-art design and product development facilities, and accelerates our geographic expansion into important growth markets, including the United States, where we do not have a ceramic coatings presence, as well as Turkey and Poland.”