Ferro Corp. recently announced it has completed the sale of the majority of the assets of its Polymer Additives business to Polymer Additives Inc., a wholly owned portfolio company of H.I.G. Capital LLC, for approximately $154 million in cash, subject to customary working capital and other purchase price adjustments. Assets included in the transaction are the company’s four plants in the U.S., its manufacturing operation in Newport, UK, certain assets at the company’s former Baton Rouge, La., plant and its polymer additives research and development lab in Independence, Ohio.
Ferro reportedly estimates that cash proceeds, net of cash income taxes and fees, from the sale will be approximately $143 million, which it plans to use primarily to repay debt under its revolving credit facility and to fund strategic growth opportunities.
“The transaction announced today marks a further step in our plan to harvest the value of assets that are no longer core to our growth strategy and focus resources on our Performance Materials product lines,” said Peter Thomas, chairman, president and CEO.