International.
Ferro announced that it has acquired Electro-Science Laboratories, Inc. Ferro paid $75 million, excluding adjustments and customary fees, for the private company based in King of Prussia, Pennsylvania.
Adjusted EBITDA for 2016 is expected to be US$9.2 million, suggesting a multiple transaction, excluding synergies, of 8.2x. Ferro expects synergies to exceed US$10 million, with US$6 million realized in the first three years of operation.
The acquisition enhances Ferro's position in the electronic packaging materials space with complementary products and provides an attractive platform for growth in Ferro's color performance business unit, the company said.
"This acquisition gives Ferro a more significant share of the addressable market for electronic packaging materials and is highly synergistic within our current Ferro business," said Peter Thomas, President and CEO of Ferro Corporation. "The ESL transaction – Ferro's fifth acquisition in 2016 – is the first significant acquisition in our pre-referenced segment, and we are actively reviewing other opportunities in this space."
