A Schulman bids acquire Ferro, offers $6.50 consideration per-share

A Schulman bids to acquire Ferro, offers $6.50 consideration per-share

5:00 AM, 5th March 2013
A Schulman bids to acquire Ferro, offers $6.50 consideration per-share

AKRON, US: A Schulman Inc has made a proposal to Ferro Corporation to acquire all of the outstanding shares of Ferro common stock for per-share consideration of $6.50, representing an estimated total enterprise value of approximately $855 million including total indebtedness. The offer represents a 25 per cent premium over the closing price of Ferro common stock on 1 March 2013, and a 32 per cent premium over the volume-weighted average trading price over the preceding 60-day period.

Based on the additional savings, A Schulman believes that its offer presents the opportunity for significant future value to Ferro shareholders through the equity portion of the consideration. A Schulman stated that its offer was based upon publicly available information about Ferro, which reported sales of approximately $1.2 billion through the first nine months of its fiscal year ended 31 December 2012. However, with greater visibility into Ferro’s businesses, A Schulman expects its offer could be adjusted subject to customary due diligence.

“A Schulman and Ferro are both recognized leaders in specialty chemicals with value-added product lines, similar business models, complementary competencies, markets and applications. We believe our combination will deliver superior value to our respective shareholders and offer better value to customers, and we would welcome the opportunity to engage in a mutually beneficial dialogue with Ferro’s Board and management,” said Joseph M Gingo, Chairman, President and CEO, A Schulman.

“A Schulman has demonstrated a proven ability to execute reorganization, growth and acquisitions. Ferro’s business units align with A Schulman’s core competencies with the exception of pharmaceuticals, which is not strategic to us. We see substantial synergies and both geographic and market growth opportunities resulting from this compelling combination, which we would hope to be a consensual transaction,” added Gingo.

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