Ferro Completes Acquisition of Cappelle Pigments

Ferro Corporation has announced that it has completed the previously announced acquisition of Belgium-based Cappelle Pigments, a leader in specialty, high-performance inorganic and organic pigments used in coatings, inks and plastics, for €50.5 million (approximately $54 million) on a cash-free and debt-free basis. The acquisition was previously announced on October 17, 2016. The transaction was funded through excess cash and borrowings under the Company’s existing revolving credit facility.

Cappelle is a 125-year-old premium pigment producer and a market leader in inorganic pigments. Cappelle’s pigments complement Ferro’s market leadership positions in Complex Inorganic Colored Pigments (“CICPs”) and Ultramarine Blue pigments. Cappelle has a strong reputation in Bismuth Vanadates, offering yellow, orange and red shade varieties, which provide an environmentally friendly alternative to lead chromates in high-performance applications. Cappelle’s organic pigments offer superior heat, light and environmental wear resistance.

“This acquisition strengthens our color solutions business by facilitating our expansion into the high-performance, specialty organic pigment market and complementing our inorganic pigment portfolio,” said Peter Thomas, Chairman, President and CEO of Ferro Corporation. “The transaction will significantly expand our addressable market for pigments and increase sales in our Pigments, Powders and Oxides (“PPO”) business by approximately $70 million. Pigments produced by Cappelle and Ferro can be combined or blended with other mediums to produce specialized color solutions that enhance functionality and effectiveness of our customers’ end products while improving customers’ efficiency. We are delighted to welcome the Cappelle team to Ferro and are eager to leverage the enhanced capabilities that the acquisition provides.”