Ferro acquires Spanish ceramic coatings firm Endeka $75 mn

Ferro acquires Spanish ceramic coatings firm Endeka for $75 mn

4:30 AM, 4th October 2017
Ferro acquires Spanish ceramic coatings firm Endeka for $75 mn
Acquisitions of Endeka and Gardenia will broaden Ferro’s portfolio of products sold into the high-end tile market, improve Ferro’s manufacturing productivity, and provide key raw material supplies. (File photo)

CLEVELAND, US: Ferro Corporation (FOE) has entered into a definitive agreement to acquire Endeka Group, a global producer of high-value coatings and key raw materials for the ceramic tile market.

In a separate transaction, Ferro has also 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 Castellon, Spain, a major hub of the worldwide ceramics market.

The total transaction value of Endeka’s acquisition was for approximately €64 million (approx $75 million) and is expected to be completed in the fourth quarter

Endeka produces frits and glazes, digital inks and colours used in the manufacture of a broad range of ceramic products, including tile, tableware and sanitary ware. This transaction backwards integrates Ferro into certain key raw materials used in the manufacture of ceramic coating materials. Endeka has approximately 340 employees who work in 9 facilities in Europe and Asia.

The Gardenia Quimica transaction was completed on 3 August. Gardenia Quimica has 26 employees and produces mediums, additives, binders, and other ancillary products for the tile coatings industry. Gardenia’s products enable Ferro to further backwards integrate into a number of materials used by Ferro and its customers 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 €5 million (approx $6 million) in 2018.

“These transactions will strengthen our performance coatings business by providing multiple opportunities for us to optimize manufacturing operations and cash conversion and to further innovate within our ceramic coating products portfolio, said Peter Thomas, chairman, president and CEO of Ferro.

“Endeka’s primary production site in Castellon will provide Ferro with necessary production capacity in Spain, enabling us to avoid capital expenditures to expand our existing facilities there. The opportunity to backwards integrate into key raw materials and other complementary products allows us to broaden our product portfolio for customers, and to add manufacturing productivity,” added Thomas.

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