Ferro sells another piece of itself

CRAIN'S CLEVELAND BUSINESS

Published: April 1, 2013 1:01 pm ET
Updated: April 1, 2013 1:03 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc., Ferro Corp.

MAYFIELD HEIGHTS, OHIO — Ferro Corp. has sold another piece of itself.

The maker of specialty chemicals said it has completed the sale of its pharmaceuticals business, Pfanstiehl Laboratories in Waukegan, Ill., to PLI Holdings Inc., an affiliate of private equity firm Med Opportunity Partners LLC of Greenwich, Conn.

The buyer is paying $16.9 million in cash and an earn-out incentive payment of up to $8 million, payable over two years based on attained earnings targets. Ferro said it retained certain tax benefits with an estimated value of approximately $5 million.

Ferro's pharmaceuticals business generated segment income of $2.4 million in 2012.

The divestiture follows Ferro's Feb. 6 sale of its solar pastes assets "and marks the continued execution of Ferro's strategy to divest non-core businesses and drive earnings growth and profitability from its core Performance Materials and Performance Chemicals businesses," the company said in a statement.

Ferro's interim president and CEO, Peter Thomas, said the latest sale "is another important milestone in our value creation strategy."

"The Ferro portfolio now is more fully concentrated in our core technologies in coatings and color and glass science, polymer science, and organic synthesis," Thomas said. "Together with our previously announced initiatives to reduce costs by more than $50 million, the successful sale of our solar pastes assets, and the additional financial flexibility gained by amending our credit facility, today's announcement reflects the board's and management's commitment to drive shareholder value from our Performance Materials and Performance Chemicals businesses.

"We will remain focused on improving return on invested capital and cash flow by streamlining operations, reducing operating costs, and pursuing select growth opportunities," Thomas said. "We are energized by the progress we're making and committed to reaching our value creation objectives."

Ferro remains the object of a hostile takeover bid by Fairlawn, Ohio-based A. Schulman Inc.


Comments

Ferro sells another piece of itself

CRAIN'S CLEVELAND BUSINESS

Published: April 1, 2013 1:01 pm ET
Updated: April 1, 2013 1:03 pm ET

Post Your Comments


Back to story


More stories

Image

'Thermoforming has nearly limitless possibilities'

April 18, 2014 12:54 pm ET

Julie McAlindon of PolyOne Corp. speaks about the future of thermoforming and the integration of Spartech Corp.    More

Image

Ascend targets nylon for auto applications, opening propylene monomer unit in Texas

April 18, 2014 10:57 am ET

Materials firm Ascend Performance Materials Inc. is in full operation at its new nylon 6/6 compounding line in Florida and will break ground by the...    More

Dutch company launching $100 million PP, PE recycling plant

April 18, 2014 10:42 am ET

Quality Circular Polymers is building a new plastics recycling operation in Geleen, the Netherlands' Chemelot industrial chemical site, with a...    More

Lumena suspends trading, delays report amid claims of 'misrepresenting' financials

April 18, 2014 10:19 am ET

China Lumena New Materials Corp., which says it has the world's largest manufacturing capacity for polyphenylene sulfide resin, has suspended its...    More

PolyQuest spins off FiberQuest unit

April 18, 2014 10:14 am ET

PolyQuest Inc. has spun off its FiberQuest unit — which distributes polyester staple fibers and cotton — as a separate company.    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events