Ferro to Acquire Tile Coatings Manufacturer
CLEVELAND - Ferro Corp. has signed a definitive agreement with the shareholders of Egypt-based tile coatings manufacturer Al Salomi for Frit and Glazes (Al Salomi) to acquire 100 percent of the equity of Al Salomi for approximately $39 million in cash, subject to working capital and other customary adjustments. The transaction is expected to close within the next 60 days, subject to customary closing conditions.
Al Salomi is one of the leading manufacturers of frits and glazes in the Middle East and North Africa (MENA). Al Salomi’s 5,600-square-meter plant, located in Suez, Egypt, includes continuous furnaces and computerized production lines and is expected to be one of Ferro’s lowest cost frit production sites. Current production capacity is 55,000 metric tons per year. An additional two lines, or 12,000 metric tons per year, of new tile coatings capacity is under construction and due to be operational by the end of 2015. The plant, which will be Ferro’s second frit production facility in Egypt, includes additional land and certain infrastructure assets to support expected growth.