Houston-based Prince International Corp, a portfolio company of American Securities LLC, will acquire Ohio-based paint-maker Ferro Corp. in a deal valued at $2.1 billion, including the assumption of debt. Prince will pay $22 in cash per Ferro share, the companies announced May 11.
The deal is expected to close during the first quarter of 2022, after approval by Ferro shareholders and completion of customary closing conditions.
Prince manufactures specialty chemicals, minerals and industrial additives. Many of the company's products are used in niche applications in the construction, electronics, consumer products, agriculture, automotive, oil and gas, heavy equipment and industrial, and similar end markets. Prince is a portfolio company of New York-based private equity firm American Securities LLC and employs approximately 1,200 people across its 21 facilities on six continents.
Ferro supplies technology-based functional coatings for glass, metal, ceramic and other substrates as well as color solutions in the form of specialty pigments and colorants for a broad range of industries and applications. The company's products are used in building and construction, automotive, electronics, industrial products, household furnishings and appliance markets. It has approximately 3,700 employees worldwide and reported 2020 sales of $959 million.
In conjunction with the closing of the transaction, Prince will combine with Ohio-based Chromaflo Technologies, another American Securities portfolio company. Chromaflo supplies colorant systems and pigment dispersions to customers in architectural and industrial coatings as well as the thermoset composites market. It has approximately 715 employees and production facilities in the U.S., Mexico, Uruguay, Canada, the Netherlands, Finland, Australia, South Africa, India, Malaysia and China.
The combination of Prince, Ferro and Chromaflo will result in a global diversified business with sales of approximately $2 billion.
"We are thrilled about combining Prince, Ferro, and Chromaflo, each a leader in their respective markets, to form a true global technology leader in color solutions, functional coatings and specialty minerals," said D. Michael Wilson, Prince CEO. "The combination will result in a company with unmatched competencies in particle engineering, glass science and color technology. It will enhance our ability, on a global scale, to deliver state-of-the art products and innovative solutions that enrich everyday life."
Morgan Stanley & Co. LLC and Barclays served as financial advisors for Prince International Corporation and Kirkland & Ellis LLP served as legal advisor. Lazard Freres & Co. LLC served as financial advisor for Ferro Corporation and Simpson Thacher & Bartlett LLP served as legal advisor.
