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Ferro Closes Acquisition of Endeka, to Expand Ceramic Coatings Offerings.

MANews-(C)2009-2017

2 November 2017 - Ohio, US-based functional coatings and color solutions provider Ferro Corp. (NYSE: FOE) has closed the acquisition of Spain-based coatings and materials provider to the ceramic tile market Endeka Group, the company said.

Ferro's acquisition of Endeka for approximately EUR 64m (approximately USD 75m) is subject to customary closing conditions and is expected to be completed in 4Q17. The transaction will be funded through excess cash and borrowings under the company's existing revolving credit facility.

Endeka full-year forecasted 2018 revenues are approximately EUR 75m (approximately USD 88m).

Ferro expects the transaction to be accretive to earnings and 2018 post-synergy adjusted EBITDA, which is forecasted to be approximately EUR 11m-12m (approximately USD 13m-14m).

Endeka produces frits and glazes, digital inks and colors used in the manufacture of a broad range of ceramic products, including tile, tableware and sanitaryware.

This transaction backward integrates Ferro into certain key raw materials used in the manufacture of ceramic coating materials. Endeka has approximately 340 employees who work in nine facilities in Europe and Asia.

Ferro Corp. said the transaction will strengthen its performance coatings business by providing multiple opportunities to optimise manufacturing operations and cash conversion and to further innovate within the company's ceramic coating products portfolio.

Endeka Group services the ceramics and tile industries with coatings technology.

Ferro Corp. supplies functional coatings for glass, metal, ceramic and other substrates and color solutions in the form of specialty pigments and colorants for a broad range of industries and applications. The company has approximately 5,300 associates globally and reported 2016 sales of USD 1.15bn.

Country: Spain

Sector: Chemicals

Target: Endeka Group

Buyer: Ferro Corp

Vendor:

Deal size in USD: 75m

Type: Corporate Acquisition

Financing: Cash

Status: Closed

Buyer advisor: , ,

Comment:

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Publication:M & A Navigator
Date:Nov 2, 2017
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