Ferro Expands Ceramic Coatings Business
October 9, 2017
Ferro Corporation has entered into a definitive agreement to acquire Endeka Group and Gardenia Quimica. Both privately held companies are headquartered near Ferro’s facilities in Castellón, Spain, a hub of the worldwide ceramics market.
Ferro’s acquisition of Endeka for approximately $75 million is subject to customary closing conditions and is expected to be completed in the fourth quarter. The transaction will be funded through excess cash and borrowings under the company’s existing revolving credit facility.
Endeka’s 2018 forecasted revenues are approximately $88 million. Ferro expects the transaction to be accretive to earnings and 2018 post-synergy adjusted EBITDA, which is forecasted to be approximately $13-14 million. Endeka has approximately 340 employees who work in nine facilities in Europe and Asia.
The Gardenia Quimica transaction was completed on Aug. 3, 2017. The transaction resulted in Ferro increasing its ownership in the joint venture company from a minority to a majority position. Revenue is forecasted to be approximately $6 million in 2018.
“These transactions will strengthen our Performance Coatings business by providing multiple opportunities for us to optimize manufacturing operations and cash conversion and to further innovate within our ceramic coating products portfolio,” said Peter Thomas, chairman, president, and CEO of Ferro Corporation. “The opportunity to backward integrate into key raw materials and other complementary products allows us to broaden our product portfolio for customers, and to add manufacturing productivity.”