CLEVELAND -- (BUSINESS WIRE) -- Ferro Corporation (NYSE: FOE) today announced further progress implementing its value creating initiatives with the completion of the previously announced sale of substantially all of the assets in its Specialty Plastics business to A. Schulman, Inc. for $91 million in cash. Cash proceeds, net of cash taxes and fees, will be approximately $88 million, which Ferro plans to use primarily to reduce debt.
Additionally, Ferro is progressing on other strategic initiatives. The refinancing of its current debt and efforts to sell its Polymer Additives business, which were announced in June, are advancing as planned. In addition, consistent with its strategy to invest in higher growth opportunities, the Company has acquired certain commercial assets of a reseller of Ferro porcelain enamel products in Turkey in order to enhance direct marketing and sales opportunities. Ferro porcelain enamel sales to this entity in 2013 were approximately $6 million. Based on this level of business, Ferro estimates that the acquisition will generate approximately $1.5 million of incremental sales and gross profit. Terms of the transaction were not disclosed. The investment in Turkey is a first step toward expanding sales in this fast-growing market.
Peter Thomas, Chairman, President and CEO of Ferro Corporation said, “The sale of the Specialty Plastics assets aligns with our objective of becoming a premier functional coatings and color solutions company and will provide liquidity for strategic growth opportunities. Looking ahead to growth, the asset acquisition in Turkey provides a base to support our commercial operations in that important region. It is a small step in our larger strategic plan to focus resources on our glass-based coatings businesses and expand into higher growth markets with a full complement of our frit-based products and higher value tile and porcelain enamel products, including digital inks. We are excited about the growth prospect associated with our core strategic platform and are actively pursuing multiple opportunities.”
About Ferro Corporation
Ferro Corporation (http://www.ferro.com) is a leading global supplier of technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials. Ferro products are sold into the building and construction, automotive, appliances, electronics, household furnishings, and industrial products markets. Headquartered in Mayfield Heights, Ohio, the Company has approximately 4,020 employees globally and reported 2013 sales of $1.6 billion.
Cautionary Note on Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking statements” within the meaning of Federal securities laws. These statements are subject to a variety of uncertainties, unknown risks, and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following:
The risks and uncertainties identified above are not the only risks the Company faces. Additional risks and uncertainties not presently known to the Company or that it currently believes to be immaterial also may adversely affect the Company. Should any known or unknown risks and uncertainties develop into actual events, these developments could have material adverse effects on our business, financial condition and results of operations.
This release contains time-sensitive information that reflects management’s best analysis only as of the date of this release. The Company does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information, or circumstances that arise after the date of this release. Additional information regarding these risks can be found in our Annual Report on Form 10-K for the year ended December 31, 2013.