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Home  > Markets & companies  > Coatings market  > Ferro completes acquisition of Egyptian ti...

Tuesday, 17 September 2019
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Markets & companies, Coatings market

Ferro completes acquisition of Egyptian tile coatings manufacturer Al Salomi

Friday, 27 November 2015

Ferro Corporation has completed the acquisition of Egypt-based tile coatings manufacturer Al Salomi for approximately EUR 33.9 million.

Al Salomi, headquartered in Cairo, Egypt, is one of the leading manufacturers of frits and glazes for the ceramic industry. Source: Katharina Wieland Müller/pixelio.de
Al Salomi, headquartered in Cairo, Egypt, is one of the leading manufacturers of frits and glazes for the ceramic industry. Source: Katharina Wiela...

Al Salomi is one of the leading manufacturers of frits and glazes in the Middle East and North Africa.

Production capacity of 55,000 metric tons

Al Salomi’s 5,600-square meter plant, located in Suez, Egypt, is state-of-the-art, including continuous furnaces and computerised production lines. It is expected to be one of Ferro’s lowest cost frit production sites. Current production capacity is 55,000 metric tons per year. An additional two lines, or 12,000 metric tons per year, of new tile coatings capacity is under construction and due to be operational in early 2016. The plant, which will be Ferro’s second frit production facility in Egypt, includes additional land and certain infrastructure assets to support expected growth.

Purchase price represents multiple of 8.0

The transaction was funded with excess cash and borrowings under the company’s existing revolving credit facility. Based on 2014 EBITDA, excluding expected synergies, the acquisition purchase price represents a transaction multiple of approximately 8.0. Including synergies and the commercial benefits associated with the two additional frit production lines now under construction, the transaction multiple would be approximately 5.7. The transaction is not expected to significantly impact Ferro’s 2015 earnings but is expected to be accretive to adjusted diluted earnings per share by EUR 0.028 to EUR 0,057 in 2016.

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