Ferro to be sold in $2.1B deal, will combine with Chromaflo
Scott Suttell
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Coatings producer Ferro Corp. of Mayfield Heights, Ohio, has agreed to be acquired by mineral and chemicals company Prince International Corp. in a $2.1 billion, all-cash transaction that ultimately will take the company private.
Ferro said in a news release issued May 11 that the purchase price represents 12.4 times adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and includes the assumption of debt, net of cash.
The deal has been unanimously approved by the Ferro board of directors. Under terms of the deal, Prince, a unit of private equity firm American Securities LLC, will acquire all common stock outstanding of Ferro for $22 per share in cash. The purchase price represents a 25.1 percent premium to the closing stock price on May 10 of $17.58 per share and a 33.8 percent premium to the 90-day, volume-weighted average price.
Ferro Corp. agrees to be acquired for $2.1 billion
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Coatings producer Ferro Corp. (NYSE: FOE) of Mayfield Heights has agreed to be acquired by mineral and chemicals company Prince International Corp. in a $2.1 billion, all-cash transaction that ultimately will take the company private.
Ferro said in a news release issued Tuesday morning, May 11, that the purchase price represents 12.4 times adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and includes the assumption of debt, net of cash.
The deal has been unanimously approved by the Ferro board of directors. Under terms of the deal, Prince, a unit of private equity firm American Securities LLC, will acquire all common stock outstanding of Ferro for $22 per share in cash. The purchase price represents a 25.1% premium to the closing stock price on Monday, May 10, of $17.58 per share and a 33.8% premium to the 90-day, volume-weighted average price.