Performance materials company Ferro Corp. of Mayfield Heights, Ohio, is bulking up its pigments business with two acquisitions for a total of about $60 million.
On Oct. 17, Ferro announced it entered into an agreement to buy Cappelle Pigments NV, and said it has acquired certain assets of Delta Performance Products.
Sales of the two businesses in 2016 are estimated to be about $76 million in total, and their adjusted earnings before interest, tax, depreciation and amortization (EBITDA) this year is projected to be about $11 million, Ferro said in a news release.
Ferro signed an agreement on Oct. 14 to acquire 100 percent of the stock of Belgium-based Cappelle Pigments for about $56 million. The transaction is expected to close by year end, subject to customary closing conditions, including regulatory review, Ferro said.
Cappelle is a 125-year-old, privately held company that produces inorganic and organic pigments used in coatings, inks and plastics. It sells its products in more than 75 countries, Ferro said.
The Delta deal was sealed on Aug. 1, Ferro said. That business produces customized colorant blends that use Ferro's complex inorganic color pigments for the concrete and outdoor hardscape markets.
Peter Thomas, chairman, president and CEO of Ferro, said in a statement that the acquisitions "are great additions to our growing pigments business. Both fit extremely well into the strategy for our color solutions businesses.
"Over the next 12 to 24 months, between the two businesses, we expect to realize commercial and operating synergies of $3 million to $4 million."