Ferro Corporation to Be Acquired by Prince International Corporation for $22.00 Per Share in $2.1 Billion All-cash Transaction; Reports First Quarter Results

Rhea-AI Summary

Ferro Corporation (NYSE: FOE) has entered into an acquisition agreement with Prince International Corporation for approximately $2.1 billion, translating to $22.00 per share. This purchase price represents a 25.1% premium over the stock's closing price on May 10, 2021. Ferro reported a first quarter sales increase of 14.3% to $288.4 million, with a gross profit rise of 17.8% to $95.1 million. The company will not hold its scheduled earnings teleconference due to the pending transaction.

Positive

• Acquisition by Prince International Corporation offers a premium of 25.1% over market price.
• First quarter net sales increased 14.3% to $288.4 million.
• Gross profit rose 17.8% to $95.1 million, improving profit margins.

Negative

• Pending acquisition has resulted in cancellation of the earnings teleconference.

Ferro Corporation (NYSE: FOE) (the Company), a leading global supplier of technology-based functional coatings and color solutions, today announced it has entered into a definitive agreement to be acquired by Prince International Corporation, a portfolio company of American Securities LLC, in an all-cash transaction valued at approximately $2.1 billion, or 12.4 times TTM Adjusted EBITDA as of March 31, 2021, including the assumption of debt, net of cash. Under the terms of the agreement, which has been unanimously approved by the Ferro Corporation Board of Directors, Prince will acquire all of the outstanding common stock of Ferro for $22.00 per share in cash. The purchase price represents a 25.1% premium to the closing stock price on May 10, 2021 of $17.58 per share and a 33.8% premium to the 90-day volume-weighted average price.

First Quarter Continuing Operations ^*:

•	Net Sales increased 14.3% to $288.4M		•	Net Sales increased 10.2% on a constant currency basis
•	Gross Profit increased 17.8% to $95.1M, Gross Profit Margin improved 100 bps to 33.0%		•	Adjusted Gross Profit increased 14.7% to $97.3M, Adjusted Gross Profit Margin improved 130 bps to 33.7%
•	GAAP diluted EPS increased 15.8% to $0.22		•	Adjusted diluted EPS increased 42.3% to $0.37
•	Income from continuing operations increased 16.6% to $18.6M		•	Adjusted EBITDA increased 41.8% to $57.8M, Adjusted EBITDA Margin improved 390 bps to 20.0%

As a result of the pending transaction, Ferro will not hold its first quarter 2021 earnings teleconference that was scheduled for 8:00 a.m. Eastern Time on Tuesday May 11, 2021.

*Comparative information is relative to prior-year first quarter Continuing Operations.

About Ferro Corporation – Ferro Corporation (www.ferro.com) is a leading global supplier of technology-based functional coatings and color solutions. Ferro supplies functional coatings for glass, metal, ceramic and other substrates and color solutions in the form of specialty pigments and colorants for a broad range of industries and applications. Ferro products are sold into the building and construction, automotive, electronics, industrial products, household furnishings and appliance markets. The Company’s reportable segments include: Functional Coatings and Color Solutions. Headquartered in Mayfield Heights, Ohio, the Company has approximately 3,700 associates globally and reported 2020 sales of $959 million.

Conference Call - Canceled

Ferro will not hold its previously scheduled first quarter 2021 earnings teleconference at 8:00 a.m. EDT Tuesday May 11, 2021.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210511005674/en/

FAQ

What is the acquisition value of Ferro Corporation by Prince International Corporation?

The acquisition is valued at approximately $2.1 billion.

What premium is being offered for Ferro Corporation's stock in the acquisition?

The acquisition offers a 25.1% premium over the closing stock price on May 10, 2021.

How much did Ferro's net sales increase in the first quarter of 2021?

Ferro's net sales increased by 14.3% to $288.4 million in the first quarter of 2021.

Will Ferro Corporation hold its earnings teleconference after the acquisition announcement?

No, Ferro Corporation has canceled its first quarter earnings teleconference due to the pending acquisition.

What was Ferro Corporation's gross profit in the first quarter of 2021?

Ferro Corporation's gross profit increased to $95.1 million in the first quarter of 2021.