Ferro to acquire Capelle Pigments, certain assets of Delta Performance Products
Ferro Corporation announced entering into an agreement to acquire Cappelle Pigments NV and the acquisition of certain assets of Delta Performance Products, for aggregate consideration of approximately $60M. Sales for the two businesses in 2016 are estimated to be approximately $76M in the aggregate and adjusted EBITDA in 2016 is expected to be approximately $11M. Based on estimated 2016 adjusted EBITDA, excluding expected synergies, the purchase price of the two businesses represents a combined transaction multiple of approximately 5.6X. Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, "These acquisitions are great additions to our growing Pigments business. Both fit extremely well into the strategy for our color solutions businesses, and we are excited about the opportunities these assets present to enhance shareholder value. Over the next 12 to 24 months, between the two businesses, we expect to realize commercial and operating synergies of $3M-$4M."