Ferro Corporation announced it has completed the acquisition of Pinturas Benicarló (Pinturas).
Ferro has acquired 100% of the equity of privately held Benicarló, Spain-based Pinturas for €15.0 million in cash, on a cash-free and debt-free basis, subject to working capital and other adjustments.
The acquisition adds new waterborne coatings technology to Ferro's Performance Colors and Glass segment and provides Ferro with an entry into the painted glass container market.
Pinturas is one of the world's largest producers of waterborne industrial paints that specializes in the niche sector of organic paints for application on glass substrates. Pinturas serves some of the largest international glass manufacturers and processors. The primary use for Pinturas' paints is for the decoration of container glasses for perfume and cosmetic, food and beverage and other consumer products applications, where painted glass packaging communicates brand identity. The company provides specialized product solutions specifically formulated for their customers' production methods and desired finishes.
Pinturas sales, for the full-year of 2016, are expected to be approximately €7.5 million. Ferro expects that the acquisition will be accretive to 2016 adjusted earnings by approximately $0.02 per diluted share, excluding the impact of purchase accounting adjustments. With the acquisition, the Company is increasing its full-year 2016 adjusted earnings guidance to $0.95 - $1.00 per diluted share (see adjusted earnings note below).
Commenting on the completed transaction, Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, "Pinturas is an excellent strategic fit with our Performance Colors and Glass Segment. Pinturas is a market leader in the highly fragmented niche segment for organic coatings for container glass. Total sales of organic coatings for container glass are estimated to be approximately $100 million annually. We believe the combination of Pinturas' product offering and our significant market position in glass coatings and broad geographic reach will be highly synergistic."
Mr. Thomas concluded, "Pinturas and Ferro share similar market approaches. We are close to our customers and take pride in our ability to quickly and effectively service their needs by providing highly formulated products and technical solutions. We are very pleased to add Pinturas to the Ferro portfolio and are looking forward to working with the Pinturas management team to expand its market reach and continue its tradition of market success."
