Ferro acquire global inorganic pigments maker Nubiola €146 mn

Ferro to acquire global inorganic pigments maker Nubiola for €146 mn

11:52 AM, 30th April 2015
Ferro to acquire global inorganic pigments maker Nubiola for €146 mn
Peter Thomas, chairman, president and CEO, Ferro Corporation.

CLEVELAND, US: Specialty material and chemical maker Ferro Corporation said it has agreed with Barcelona-based Nubiola Pigmentos shareholders to acquire 100 per cent of Nubiola equity, on a cash-free and debt-free basis, for €146 million. Based on 2014 EBITDA, the acquisition purchase price represents a transaction multiple of approximately 7X. The transaction is expected to close within the next 60 days, it said.

Nubiola is a worldwide producer of specialty inorganic pigments and the world’s largest producer of ultramarine blue, a high-value pigment for plastics and construction industries due to its durability, unique colour attributes and its whitening capability, Ferro said.

“Nubiola is an excellent strategic fit with Ferro, as we strengthen our position as a global colour solutions provider. The acquisition will significantly expand our product portfolio and geographic footprint and more than triple the size of our addressable market in inorganic pigments to greater than $1 billion,” said Peter Thomas, chairman, president and CEO, Ferro Corporation.

“Our strengths are complementary. Nubiola’s largest end market is the plastics industry, while Ferro’s complex inorganic colour pigments (CICP) business focuses predominantly on the coatings market. Nubiola and Ferro share distribution channels and we have identified a number of cross-selling opportunities, though there is minimal overlap between the two companies’ product lines,” added Thomas.

Also Nubiola’s business model of regional production and high-touch local technical service is consistent with Ferro’s current go-to-market strategy, the company said. Moreover, Ferro is embarking on the growth phase of its value creation strategy, and is seeking to expand sales in emerging markets, accelerate product development efforts, and acquire businesses that build upon its leading market positions in glass-based coatings and color solutions, it said.

Ferro was advised by Jones Day, while EVA Dimensions LLC assisted with valuation modeling.

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