Ferro expands ceramic coatings business
In a separate transaction, Ferro has acquired a majority interest in Gardenia Quimica, which also supplies the ceramic tile market. Both privately held companies are headquartered near Ferro’s facilities in Castellón, Spain.
Nine facilities in Europe and Asia
Ferro’s acquisition of Endeka for approximately EUR64 million is expected to be completed in the fourth quarter. The transaction will be funded through excess cash and borrowings under the Company’s existing revolving credit facility. Endeka full-year forecasted 2018 revenues are approximately EUR75 million. The company produces frits and glazes, digital inks and colours used in the manufacture of ceramic products, including tile, tableware and sanitaryware. This transaction backward integrates Ferro into certain key raw materials used in the manufacture of ceramic coating materials. Endeka operates 9 facilities in Europe and Asia.
About Gardenia Quimica
The Gardenia Quimica transaction was completed on August 3, 2017. Gardenia Quimica produces mediums, additives, binders, and other ancillary products for the tile coatings industry. Gardenia’s products enable Ferro to further backward integrate into a number of materials used in the manufacture of tile coating products. The transaction resulted in Ferro increasing its ownership in the joint venture company from a minority to a majority position. Revenue is forecasted to be approximately EUR5 million in 2018.