Ferro Acquires ESL
November 6, 2016
Ferro has acquired Electro-Science Laboratories, Inc. Ferro paid $75 million, excluding customary adjustments and fees, for the privately held company headquartered in King of Prussia, Penn. Full-year 2016 adjusted EBITDA is expected to be $9.2 million, suggesting a transaction multiple, excluding synergies, of 8.2x. Ferro expects synergies in excess of $10 million, with $6 million realized within the first three years of operation.
The acquisition enhances Ferro’s position in the electronic packaging materials space with complementary products, and offers an attractive platform for growth in Ferro’s Performance Colors and Glass business unit, the company stated.
“This acquisition gives Ferro a more significant share of the addressable market for electronic packaging materials, and is highly synergistic within our current Ferro business,” said Peter Thomas, chairman, president and CEO of Ferro Corporation. “The ESL transaction — the fifth acquisition by Ferro in 2016 — is the first significant acquisition in our Performance Color and Glass segment, and we are actively reviewing other opportunities in this space.”