US specialty chemicals company Ferro rejects buyout offers from PE firms
16 Jul 2016
US specialty chemicals company Ferro Corp has rejected buyout offers from private equity firms Apollo Global Management and CVC Capital Partners as being too low, Reuters yesterday reported, citing people familiar with the matter
Ferro's board rejected the all-cash offers, which were below the company's stock trading price of around $14, the report said.
Ferro, which has a market cap of $1.4 billion, may explore other alternatives if the buyout firms do not improve their offers, including looking at an acquisition itself, the report added.
In May, Ferro hired financial advisory and asset management firm Lazard Ltd to explore strategic alternatives after its shareholder Connecticut-based hedge fund FrontFour Capital Group said that the company should explore a sale because it was underperforming.
Founded in 1919, Ohio-based Ferro is a supplier of technology-based performance materials, including glass-based coatings, pigments and colours, and polishing materials.
Its products are sold into the building and construction, automotive, appliances, electronics, household furnishings, and industrial products markets.
The New York Stock Exchange-listed company employs 4,000 people globally, has 33 manufacturing sites around the world and a customer base in more than 100 countries.