05.01.15
Ferro Corporation announced that it has signed a definitive agreement with the shareholders of Barcelona-based Nubiola Pigmentos to acquire 100% of the equity of Nubiola, on a cash-free and debt-free basis, for €146 million.
Based on 2014 EBITDA, excluding expected transaction synergies, the acquisition purchase price represents a transaction multiple of approximately 7X. The transaction will be funded with excess cash and a draw on the company’s existing revolving credit facility. The transaction is expected to close within the next 60 days, subject to customary closing conditions.
Nubiola is a worldwide producer of specialty inorganic pigments, including ultramarine blue. Other products include specialty iron oxides, chrome oxide greens and corrosion Inhibitors. Nubiola generated 2014 annual sales of $119 million, based on the current euro exchange rate, and achieved compound annual growth of 4.1% over the last three years. The 101-year-old family-owned company employs approximately 750 people, and has production facilities in Spain, Colombia, Romania, and India and a joint venture in China.
“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 of Ferro Corporation. “Nubiola will bring technology leadership on a global scale in ultramarine blue, along with a range of other high-value pigment and corrosion inhibitor product lines.”
“Our strengths are complementary,” Thomas added. “Nubiola’s largest end market is the plastics industry, while Ferro’s Complex Inorganic Color Pigments (CICP) business focuses predominantly on the coatings market.”
Based on 2014 EBITDA, excluding expected transaction synergies, the acquisition purchase price represents a transaction multiple of approximately 7X. The transaction will be funded with excess cash and a draw on the company’s existing revolving credit facility. The transaction is expected to close within the next 60 days, subject to customary closing conditions.
Nubiola is a worldwide producer of specialty inorganic pigments, including ultramarine blue. Other products include specialty iron oxides, chrome oxide greens and corrosion Inhibitors. Nubiola generated 2014 annual sales of $119 million, based on the current euro exchange rate, and achieved compound annual growth of 4.1% over the last three years. The 101-year-old family-owned company employs approximately 750 people, and has production facilities in Spain, Colombia, Romania, and India and a joint venture in China.
“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 of Ferro Corporation. “Nubiola will bring technology leadership on a global scale in ultramarine blue, along with a range of other high-value pigment and corrosion inhibitor product lines.”
“Our strengths are complementary,” Thomas added. “Nubiola’s largest end market is the plastics industry, while Ferro’s Complex Inorganic Color Pigments (CICP) business focuses predominantly on the coatings market.”