Cleveland-based compounder Ferro Corp. has scrapped its plans to sell its specialty plastics segment for $133 million to a private equity group, citing a reduction in the purchase price offer that Ferro officials deemed unworthy.
Under the name Olympic Plastics Inc., Southfield, Mich.-based Wind Point Partners had agreed to buy all assets of the Ferro unit, which makes customized thermoplastic compounds and alloys, plastic colorants, gel coats and thermoset pastes, according to a form filed with the Securities and Exchange Commission.
``It's a good business with good prospects,'' said Ferro spokeswoman Mary Abood in an Oct. 13 telephone interview. ``Unfortunately, the Wind Point offer didn't address the value that we believe is in this business.
``This is not a fire sale. We expect to get full value out of this business.''
Wind Point officials declined comment.
James Kirsch, Ferro president and chief executive officer, echoed those sentiments in a news release.
``We will continue to operate the specialty plastics business, and expect it to remain a positive contributor to Ferro's operations,'' he said.
``As we go forward, we will continue to pursue portfolio realignment activities that we believe best serve the interests of our shareholders and the growth objectives of the company.''
Ferro employs 6,800 globally and reported 2005 sales of $1.9 billion. The specialty plastics segment generated 2005 sales of about $275 million. It employs about 750 and operates 11 production facilities in the United States, Europe and Latin America.