Ferro Corporation announced today that it has completed the acquisition of Nubiola Pigmentos (“Nubiola”) on a cash-free and debt-free basis for €149 million (approximately $165 million), subject to customary working capital and other purchase price adjustments.
The acquisition was previously announced on April 29, 2015. 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 $0.04 to $0.06 in 2015 and by more than $0.15 in 2016.
Nubiola is a worldwide producer of specialty inorganic pigments and the world’s largest producer of Ultramarine Blue, a pigment for the plastics and construction industries, highly valued for its durability, unique color attributes and whitening capability. Nubiola also produces specialty Iron Oxides, Chrome Oxide Greens and Corrosion Inhibitors. Nubiola, which is based in Barcelona, Spain, employs approximately 750 people around the world, and has production facilities in Spain, Colombia, Romania, and India and a joint venture in China.
“We are excited about the Nubiola acquisition and the opportunities it provides to drive shareholder value, enhance our current position in inorganic pigments, and accelerate our strategy to become a leading global functional coatings and color solutions company,” said Peter Thomas, Ferro Chairman, President and CEO. “We look forward to working with the Nubiola team to continue the company’s long tradition of quality, innovation and customer service.”
Mr. Thomas added, “Nubiola is a good example of the kind of businesses we consider attractive acquisition candidates. Relative to the businesses we recently divested, Nubiola has higher profit margins, stronger positions in its respective markets, and more synergies with our core glass-based coatings and color solutions operations. Nubiola is a great strategic fit, giving us a more diverse pigments portfolio and nearly doubling the size of our color solutions business platform. We continue to actively pursue a number of other transactions to build out our three business segments. We are pleased with our progress and excited about future opportunities.”