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

Accella buys IPS Polymer Systems

March 3, 2015 5:26 pm ET

Accella Performance Materials Inc. is acquiring IPS Polymer Systems Inc. to expand the firm's growing polyurethane operation.    More

Image

Best Places To Work: No. 3, Sun Plastech Inc.

March 3, 2015 2:25 pm ET

Sun Plastech Inc., No. 3 on Plastics News' Best Places to Work ranking, offers so many interesting benefits and perks, it's hard to know where to...    More

Image

Coveris sees 'common culture' form after mergers, acquisitions

March 3, 2015 11:37 am ET

Coveris Holdings Corp. is a mega-rollup in packaging, a major international player, said Robert Larson, president of Coveris' Food and Consumer North ...    More

Image

Bayer expands with acquisition of Germany's Thermoplast Composite

March 3, 2015 10:59 am ET

Bayer AG's Bayer MaterialScience LLC has bought composite materials specialist Thermoplast Composite GmbH based near Nuremberg, Germany.    More

Image

Bayer MaterialScience spinoff on schedule

March 3, 2015 10:14 am ET

The head of Bayer AG said the group still must decide the details to spin off its Bayer MaterialScience plastics group this year.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events