Ferro Announces Acquisition to Further Strengthen Its Position in Fast-Growing Turkey Market

Posted on January 12, 2016 · 2 min read

Ferro Announces Acquisition to Further Strengthen Its Position in Fast-Growing Turkey Market - Featured Image | MEA Markets
Share this article
Image

Ferro Announces Acquisition to Further Strengthen Its Position in Fast-Growing Turkey Market

Ferro Corporation announced today that it has purchased 100% of the equity of privately held Istanbul-based Ferer Dis Ticaret Ve Kimyasallar Anonim Sirketi A.S. (‘Ferer’) for approximately $9.0 million in cash, on a cash-free and debt-free basis, subject to working capital and other adjustments. The transaction will be funded with excess cash and a draw on the Company’s revolving credit facility. 

The acquisition of Ferer is the third step Ferro has taken in the past 18 months to strengthen its position in the fast-growing Turkey market. In July 2014, Ferro acquired assets of a reseller of Ferro porcelain enamel products in Turkey, providing a commercial base for direct marketing and sales opportunities. In November 2015, Ferro completed the acquisition of Egypt-based tile coatings manufacturer Al Salomi for Frit and Glazes, adding production capacity to meet current and future demand in Turkey as well as other markets in the Middle East and North Africa. Now, the Ferer acquisition brings Ferro an operational presence in Turkey focused on the glass market.

Ferer is a distributor in Turkey of Ferro color and glass coating products and also provides customized, blended products and technical support primarily for the glass industry. Ferer’s primary focus is on servicing manufacturers of automotive, flat and container glasses as well as non-tile ceramic applications, including dinnerware, stoneware and porcelain. Ferer also distributes pigments into the paint and plastics industries. Among other activities, Ferer provides local operational capabilities to produce and distribute customized paste and powder products from intermediates supplied by Ferro. Ferer recently opened a new blending, mixing and pasting plant that is expected to significantly expand production and distribution capabilities.

Ferro estimates that in 2016 the acquisition will generate incremental sales of approximately $3 million and incremental adjusted EBITDA of approximately $2.0 million.

Commenting on the proposed transaction, Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, ‘The acquisition of Ferer advances our strategy to invest in higher-growth opportunities and to expand sales in this fast-growing region. The acquisition adds to our existing presence in Turkey and enables us to serve our customers more directly and effectively. The new Ferer plant expands our capabilities to produce customized products and color solutions and will serve as a platform to build a broader marketing and customer support infrastructure.’

Mr. Thomas concluded, ‘The Ferer management team have been valued partners of Ferro over the past 17 years. They have built a company that is well known and respected in the glass market in Turkey. We look forward to working with the Ferer team to build on that foundation and to accelerate our growth in the region.’

You might also like

Looking for more? Gain deeper insights with these recommended articles, selected to provide further value.

November 11, 2015 Procera Sees Surge of Growth in Middle East

Firm opens training facility in Dubai, addressing surge of growth in Middle East.

April 29, 2021 Bank of Abyssinia Taps Into Path Solutions to Achieve Sharia Compliance and Operational Efficiency

Path Solutions, a global provider of AAOIFI-certified software solutions and services for Islamic banks and financial institutions, today announced the signing of a new partnership agreement with Bank of Abyssinia (“BoA”), one of the leading banks...

February 19, 2016 QNB First Bank in Qatar to Launch NCR Interactive Video Teller Technology

QNB, the leading Financial Institution in the Middle East and North Africa becomes the first bank in Qatar to introduce Interactive Teller

Join our newsletter.

Gain Access To Exclusive Content

Stay Updated With The Latest News

It's Free To Subscribe

By signing up, you agree to receive marketing emails.

Join our newsletter box - side image
Trusted by the best teams around the world