Ferro Corporation has announced further progress implementing its value creating initiatives with the completion of the previously announced sale of substantially all of the assets in its Specialty Plastics business to A. Schulman, Inc. for $91 million in cash. Cash proceeds, net of cash taxes and fees, will be approximately $88 million, which Ferro plans to use primarily to reduce debt.
Additionally, Ferro is progressing on other strategic initiatives. The refinancing of its current debt and efforts to sell its Polymer Additives business, which were announced in June, are advancing as planned. In addition, consistent with its strategy to invest in higher growth opportunities, the Company has acquired certain commercial assets of a reseller of Ferro porcelain enamel products in Turkey in order to enhance direct marketing and sales opportunities. Ferro porcelain enamel sales to this entity in 2013 were approximately $6 million. Based on this level of business, Ferro estimates that the acquisition will generate approximately $1.5 million of incremental sales and gross profit. Terms of the transaction were not disclosed. The investment in Turkey is a first step toward expanding sales in this fast-growing market.