10.03.17
Ferro Corporation entered into a definitive agreement to acquire Endeka Group for €64 million ($75.19M) after securing a majority interest in Gardenia Quimica in August.
Both privately held companies are headquartered near Ferro’s facilities in Castellón, Spain.
The closing is slated for 4Q 2017 and will be funded through excess cash and borrowings under the company’s existing revolving credit facility, per Ferro.
Endeka's full-year forecasted 2018 revenues are approximately €75 million ($88.11M), according to Ferro.
Ferro expects the transaction to be accretive to earnings and 2018 post-synergy adjusted EBITDA, which is forecasted to be approximately €11-12 million ($13-14M).
Endeka produces frits and glazes, digital inks and colors used in the manufacture of a broad range of ceramic products, including tile, tableware and sanitaryware.
Endeka has approximately 340 employees who work in 9 facilities in Europe and Asia.
The Gardenia Quimica transaction was completed on Aug. 3.
Gardenia Quimica has 26 employees and produces mediums, additives, binders, and other ancillary products for the tile coatings industry.
Per Ferro, revenue is forecasted to be approximately €5 million ($5.87M) in 2018.
“Over the past few years, we have moved our tile-oriented portfolio up the value chain, focusing on the high end of the market," said Peter Thomas, Chairman, president and CEO of Ferro Corporation. "At the same time, we have driven operating efficiencies and product innovation to ensure that our customers receive the highest quality products and services."
Adjusted Earnings Before Interest, Taxes and Depreciation (“EBITDA”)
Adjusted EBITDA for the transactions excludes the impact of certain items, primarily associated with purchase accounting adjustments, transaction-related expenses and acquisition integration costs, restructuring activities, gains and losses on asset sales concluded by the companies being acquired, and other adjustments to harmonize their accounting results to our standard accounting practices. The impact of adjusting for these items cannot be determined because one of the transactions has not been completed and it is not possible at this time to identify the potential amount or significance of these items for the balance of the year, as they have not occurred yet. Therefore, the Company is unable to reconcile the full-year 2018 adjusted EBITDA guidance for the acquisitions.
Both privately held companies are headquartered near Ferro’s facilities in Castellón, Spain.
The closing is slated for 4Q 2017 and will be funded through excess cash and borrowings under the company’s existing revolving credit facility, per Ferro.
Endeka's full-year forecasted 2018 revenues are approximately €75 million ($88.11M), according to Ferro.
Ferro expects the transaction to be accretive to earnings and 2018 post-synergy adjusted EBITDA, which is forecasted to be approximately €11-12 million ($13-14M).
Endeka produces frits and glazes, digital inks and colors used in the manufacture of a broad range of ceramic products, including tile, tableware and sanitaryware.
Endeka has approximately 340 employees who work in 9 facilities in Europe and Asia.
The Gardenia Quimica transaction was completed on Aug. 3.
Gardenia Quimica has 26 employees and produces mediums, additives, binders, and other ancillary products for the tile coatings industry.
Per Ferro, revenue is forecasted to be approximately €5 million ($5.87M) in 2018.
“Over the past few years, we have moved our tile-oriented portfolio up the value chain, focusing on the high end of the market," said Peter Thomas, Chairman, president and CEO of Ferro Corporation. "At the same time, we have driven operating efficiencies and product innovation to ensure that our customers receive the highest quality products and services."
Adjusted Earnings Before Interest, Taxes and Depreciation (“EBITDA”)
Adjusted EBITDA for the transactions excludes the impact of certain items, primarily associated with purchase accounting adjustments, transaction-related expenses and acquisition integration costs, restructuring activities, gains and losses on asset sales concluded by the companies being acquired, and other adjustments to harmonize their accounting results to our standard accounting practices. The impact of adjusting for these items cannot be determined because one of the transactions has not been completed and it is not possible at this time to identify the potential amount or significance of these items for the balance of the year, as they have not occurred yet. Therefore, the Company is unable to reconcile the full-year 2018 adjusted EBITDA guidance for the acquisitions.
