“While the powder coatings business has been an important part of our coatings business segment, it no longer fits with the long-term strategy of the company,” said Hector R. Ortino, Ferro chairman and chief executive officer. “The business is clearly a better strategic fit for Akzo Nobel and Rohm and Haas, where there is greater opportunity for growth.”
Akzo Nobel is purchasing Ferro’s operations in the Americas and Asia-Pacific, while Rohm and Haas is buying operations in Europe.
The Akzo Nobel accord includes two manufacturing operations (Nashville, TN and Brecksville, OH) and a R&D operation in Cleveland, OH, as well as manufacturing operations in Asia—Ningbo, China and joint venture interests in Ulsan, South Korea.
The sale to Rohm and Haas includes three manufacturing operations in Europe—the UK, Germany and Spain—as well as an extensive sales and distribution network throughout Europe. Rohm and Haas Company will incorporate the new business into its existing powder operations headquartered in Reading, PA.
The sale is valued at $160 million for Ferro, including the assumption of certain liabilities by the acquiring parties. Sales of Ferro’s powder coatings business were approximately $175 million in 2001. Sales in the Americas and Asia-Pacific region were estimated to be $100 million in 2001. (For more on this deal and how it affects the rest of the powder coatings market, see p. 32 in this issue.)