Ferro Corporation has completed the acquisition of tile coating manufacturer Vetriceramici S.p.A. for €83 million (approximately $104 million), subject to customary working capital and other purchase price adjustments. Vetriceramici was owned by Milan, Italy-based Private Equity Funds’ Management Company Star Capital SGR S.p.A. and other related minority owners. The acquisition was previously announced on September 21, 2014.
The all-cash transaction was funded with excess cash and borrowings under the Company’s existing revolving credit facility. It is expected to be accretive to Ferro’s adjusted diluted earnings per share by $0.12 to $0.14 in 2015.
Vetriceramici, based in Casola Valsenio, Italy, is a supplier of ceramic coatings to high-end tile manufacturers. It has manufacturing facilities in Italy and Mexico, a mixing plant in Poland, and research and development and sales offices in Italy and Turkey. The product line includes high-value, specialty frits and grits (finely-milled frits), glazes, digital inks and other specialized tile coatings, and forehearth color solutions.
“Vetriceramici is an excellent strategic fit with our existing tile coatings business and our performance colors and glass business,” said Peter Thomas, chairman, president and CEO of Ferro Corporation. “The acquisition is in line with our strategy to focus resources on our glass-based coatings businesses, adds to our frit production capacity and expands our geographic footprint. We are excited about bringing these two strong tile coatings businesses together and are eager to assist in accelerating the globalization of the Vetriceramici brand. We look forward to working with the team at Vetriceramici to build on their impressive accomplishments to date.”
