Please wait.'

Page is loading'

Home  > Markets & companies  > Raw materials market  > Ferro further expands its colours solution...

Friday, 07 August 2020
Markets & companies, Raw materials market

Ferro further expands its colours solutions business

Thursday, 20 October 2016

Ferro Corporation has 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 EUR55 million.

Ferro further expands its colours solutions business. Source: Subscription Monthly/

Ferro further expands its colours solutions business. Source: Subscription Monthly/

Sales for the two businesses in 2016 are estimated to be approximately EUR69 million in the aggregate and adjusted EBITDA in 2016 is expected to be approximately EUR10 million. 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.

Cappelle Pigments

On October 14, 2016, Ferro signed a definitive agreement to acquire 100% of the stock of Belgium-based Cappelle Pigments for EUR50.5 million on a cash-free and debt-free basis. The transaction is expected to close by year end, subject to customary closing conditions, including regulatory review.

Cappelle is a 125-year-old, privately held company that produces specialty, high-performance inorganic and organic pigments used in coatings, inks and plastics and sells its products in more than 75 countries. Cappelle specializes in weather-, heat-, and light-resistant organic pigments. The company is also a market leader in certain inorganic pigments that complement Ferro’s market leadership positions in Complex Inorganic Colored Pigments ("CICPs”) and Ultramarine Blue pigments.

Delta Performance Products

On August 1, 2016, Ferro purchased certain assets of Delta Performance Products. This business produces customised colourant blends that utilise Ferro’s CICPs for the concrete and outdoor hardscape markets.

Peter Thomas, CEO of Ferro Corporation:

"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 realise commercial and operating synergies of EUR2.7 million to EUR3.6 million.

These acquisitions are much like the Nubiola acquisition we made last year. They both increase the breadth of options we can offer our customers, increase our technical capabilities and enhance our market position. The transactions will increase Ferro’s PPO business by approximately 30% and expand our addressable market for pigments by a factor or four, to approximately EUR3.6 billion. The addition of Cappelle’s proprietary pigments and capabilities will advance our expansion into the specialty organic pigment market and round out our product portfolio. The Delta transaction enhances our position as a manufacturer of engineered colorants and custom blends.”

Mr. Thomas concluded, "These businesses demonstrate the value proposition of our Pigments business. We create value for our customers by combining and manipulating pigments to produce specialised color solutions that provide functional attributes for our customers’ end products, or improve the effectiveness and efficiency of their supply chain and manufacturing processes.”

top of page
Comments (0)
Add Comment

Post comment

You are not logged in