Tag Archives: Peter Thomas

Business, Finance, Occupation & Industry

Ferro Announces Sale of Its Pharmaceuticals Business

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Ferro Announces Sale of Its Pharmaceuticals Business

  • Represents continued execution of Ferro’s value creation strategy
  • Advances focus on core businesses

CLEVELAND–(BUSINESS WIRE)– Ferro Corporation (NYSE: FOE, the “Company”) announced today that it has completed the sale of its pharmaceuticals business, Pfanstiehl Laboratories, to PLI Holdings, Inc., an affiliate of Med Opportunity Partners, LLC. Consideration was comprised of a $16.9 million cash payment and an earn-out incentive payment of up to $8 million, payable over two years based on attained earnings targets. In addition, the Company retained certain tax benefits with an estimated value of approximately $5 million. Ferro’s pharmaceuticals business generated segment income of $2.4 million in 2012.

The divestiture follows the Company’s February 6, 2013, sale of its solar pastes assets and marks the continued execution of Ferro’s strategy to divest non-core businesses and drive earnings growth and profitability from its core Performance Materials and Performance Chemicals businesses.

“The sale of our pharmaceuticals business is another important milestone in our value creation strategy. The Ferro portfolio now is more fully concentrated in our core technologies in coatings and color and glass science, polymer science, and organic synthesis,” said Peter Thomas, Interim President and Chief Executive Officer of Ferro. “Together with our previously announced initiatives to reduce costs by more than $50 million, the successful sale of our solar pastes assets, and the additional financial flexibility gained by amending our credit facility, today’s announcement reflects the Board’s and management’s commitment to drive shareholder value from our Performance Materials and Performance Chemicals businesses. We will remain focused on improving return on invested capital and cash flow by streamlining operations, reducing operating costs, and pursuing select growth opportunities. We are energized by the progress we’re making and committed to reaching our value creation objectives.”

Mr. Thomas added, “On behalf of everyone at Ferro, I thank the Pfanstiehl team for their many contributions. I am confident they will have exciting opportunities ahead. I also extend our thanks to our advisors on the transaction. The sale announced today is the culmination of an extended period of marketing the business.”

The Company was advised by KeyBanc Capital Markets and Calfee, Halter & Griswold LLP.

…read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Ferro Announces Successful Amendment to Credit Facility

Leave a comment

By Business Wirevia The Motley Fool

Filed under:

Ferro Announces Successful Amendment to Credit Facility

Provides Greater Flexibility in Continued Execution of Value Creation Strategy

CLEVELAND–(BUSINESS WIRE)– Ferro Corporation (NYSE: FOE, the “Company”) today announced the amendment of its existing senior credit facility. The amendment reflects a further benefit achieved through the Company’s strategy to divest its solar pastes assets. The previously announced sale of Ferro’s solar pastes assets increased operating cash flows and significantly reduced the size of the Company’s precious metal consignment program and other working capital needs. As a result, Ferro is reducing the Company’s revolving loan commitment from $350 million to $250 million. The amendment will lower annual commitment fees by approximately $500,000 and modify certain financial and leverage ratio covenants. Additional details can be found in the Form 8-K that the Company will file with the Securities and Exchange Commission.

“Between cash on hand and expected cash from operations, we believe Ferro has sufficient cash resources to fully fund the initiatives now underway to reduce operating costs by over $50 million by the end of 2014,” said Peter Thomas, Interim President and Chief Executive Officer of Ferro. “By amending Ferro’s credit facility, very little of which currently has been utilized, we have gained significant additional financial flexibility to expand upon our cost savings programs and execute on other initiatives in our value creation strategy.”

The amendment was unanimously approved by the Company’s bank group.

About Ferro Corporation

Ferro Corporation (http://www.ferro.com) is a leading global supplier of technology-based performance materials for manufacturers. Ferro materials enhance the performance of products in a variety of end markets, including building and construction, automotive, appliances, electronics, household furnishings, pharmaceuticals, and industrial products. Headquartered in Mayfield Heights, Ohio, the Company has approximately 4,860 employees globally and reported 2012 sales of $1.8 billion.

Cautionary Note on Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking statements” within the meaning of Federal securities laws. These statements are subject to a variety of uncertainties, unknown risks and other factors concerning the Company’s operations and business environment. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements and that could adversely affect the Company’s future financial performance include the following:

…read more
Source: FULL ARTICLE at DailyFinance