Ferro to be Acquired by Prince International for $2.1 Billion; First-Quarter Results Top Estimates
03:24 PM EDT, 05/11/2021 (MT Newswires) -- Ferro (FOE) said Tuesday it has agreed to be acquired by Prince International for $2.1 billion, including debt, and reported higher-than-expected results in the first quarter.
Prince, a unit of private-equity firm American Securities, will acquire the outstanding shares of Ferro for $22 per share in cash, a premium of 25% to the functional coatings supplier's closing stock price on May 10.
The deal is expected to close in the first quarter of 2022, subject to the approvals of regulators and Ferro shareholders. The transaction has received unanimous approvals from Ferro's board.
"The steps we have taken to develop a cohesive technology-driven portfolio and enhance our market leadership positions with long-standing, market-leading customers and deliver sustainable growth have made Ferro an attractive investment," said Ferro Chief Executive Peter Thomas.
Cleveland-based Ferro will become a private company and a subsidiary of Prince after the deal closes.
Meanwhile, Ferro reported adjusted diluted per-share earnings of $0.37 in the first quarter, up from $0.26 a year earlier. Analysts polled by Capital IQ expected $0.23. Sales rose to $288.4 million from $252.3 million last year. The Street projected $260.4 million.
"Ferro's first-quarter 2021 performance demonstrates the strength of our business, with revenue and gross profit significantly higher than the same period last year," said Thomas. "Optimization initiatives throughout the company also contributed to the strong first-quarter performance."
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