International. Ferro Corporation announced the acquisition of Dip Tech Ltd. ("Dip-Tech"), a provider of digital printing solutions for glass coatings. Ferro paid $60 million for a private company based in Kfar Saba, Israel.
The company expects the transaction to increase earnings in 2018 based on the prior-year adjusted EBITDA for synergies, which is forecast in a range of $6 million to $7 million. Ferro expects a return on invested capital of more than 15% within the first five years of the acquisition. The transaction was financed through excess cash and loans under Ferro's existing Credit Renewal.
"This acquisition aligns very well with Ferro's next phase of our value creation strategy: dynamic innovation and optimization. It equips us with a fully commercialized and patent-protected digital glass printing business that generates gross margins at the high end of our Color and Glass Performance portfolio. Dip-Tech's digital glass printing technology is attracting customers due to the high-precision multi-color effects possible with durable glass-based inks, along with increased flexibility and efficiency in production," commented Peter Thomas, CEO of Ferro Corporation.
