Dec 22 2014
Ferro Corporation announced today that it has completed the sale of the majority of the assets of its Polymer Additives business to Polymer Additives, Inc., a wholly owned portfolio company of H.I.G. Capital, LLC, for approximately $154 million in cash, subject to customary working capital and other purchase price adjustments.
Assets included in the transaction are the Company’s four plants in the United States, its manufacturing operation in Newport, United Kingdom, certain assets at the Company’s former Baton Rouge, Louisiana plant and its polymer additives research and development lab in Independence, Ohio. The sold U.S. manufacturing sites are located in the following communities:
- Bridgeport, New Jersey
- Cleveland, Ohio
- Fort Worth, Texas
- Walton Hills, Ohio
The Company estimates that cash proceeds, net of cash income taxes and fees, from the sale will be approximately $143 million, which it plans to use primarily to repay debt under its revolving credit facility and to fund strategic growth opportunities. The asset sale closed concurrently with the signing of the asset purchase agreement. The Company was advised on the transaction by KeyBanc Capital Markets Inc. and Jones Day.
Excluded from this transaction are the Company’s Europe-based Polymer Additives assets, including the Antwerp, Belgium dibenzoates manufacturing assets, and related Polymer Additives European headquarters and lab facilities. These assets are currently being marketed.
Peter Thomas, Chairman, President and Chief Executive Officer of Ferro, said, “The transaction announced today marks a further step in our plan to harvest the value of assets that are no longer core to our growth strategy and focus resources on our Performance Materials product lines. Earlier this year, we completed the sale of our Specialty Plastics business for $91 million, and we remain committed to the marketing process for our European Polymer Additives assets. Our strategic vision is to become the premier global functional coatings and color solutions company, building on our core competencies in glass and color technologies. These divestitures align our portfolio with that vision and provide liquidity for strategic growth activities. We believe that continued focus on our core businesses will allow us to deliver increased cash flow and greater shareholder value.”
Source: http://www.ferro.com/