Functional coatings and color solutions provider Ferro has acquired electronic packaging materials producer Electro-Science Laboratories (ESL).
The deal included the payment of $75m excluding customary adjustments and fees for the Pennsylvania-based firm, which is expected to expand Ferro’s presence in the electronic packaging materials segment.
The acquisition will also help Ferro to advance its performance colors and glass business unit.
ESL manufactures thick-film pastes and ceramic tape systems, which can be used in different industrial and consumer applications.
The firm’s products will be used to construct hybrid integrated circuits, modules and sensors that can function in difficult conditions.
ESL paste systems for heaters were developed to be used in a range of substrates, including metal, ceramic and glass.
Hybrid integrated circuits using ESL products can be used in aerospace and defense applications, including satellites.
The modules and sensors can be used in automobile components such as oxygen sensors. Its products in heat sensors are used in appliances such as ovens and water heaters
Ferro president and CEO Peter Thomas said: “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.”
“While ESL and Ferro both employ similar manufacturing processes, the product portfolios, end use applications and customers are complementary.”
“In addition, Ferro is backward integrated into glass production, which will provide raw material synergy opportunities.”
Ferro produces technology-based performance materials, including glass-based coatings, pigments and colors, and polishing materials.
