FERRO CORPORATION ON TRACK TO CLOSE COMPANY'S LARGEST ACQUISITION

01-Aug-2001

Ferro Corporation (NYSE:FOE) announced that the Company’s pending acquisition of certain dmc2 businesses from OM Group, Inc. (NYSE:OMG) of Cleveland, Ohio, is on track to close during the third quarter of 2001. The Company reported today that the 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvement Act expired on July 30, 2001, allowing Ferro to proceed with the acquisition.

“We are very pleased that the FTC has not required additional information, because it is a positive sign indicating that the transaction should close during the third quarter,” Hector Ortino, chairman and CEO, commented. “The dmc2 businesses we are acquiring are highly complementary to our existing core businesses and will generate significant synergies. The acquisition will accelerate our long-term strategic plan to expand geographically and to create a portfolio of businesses with a higher growth profile. It will also allow us to achieve greater critical mass in several key businesses.”

Review by the regulatory agencies of a select number of European countries will occur during August. Although Ferro operates in many of the same markets as dmc2, the Company does not foresee any objections to the acquisition by those regulatory bodies.

Under the terms of the agreement, Ferro will purchase the electronic materials, performance pigments, glass systems and Cerdec ceramics businesses of dmc2. Annual sales for these businesses were approximately $520 million in 2000.

Ortino added, “We plan to use our experience and success with past transactions to ensure a smooth integration for this acquisition and realize the significant synergies this acquisition has to offer. We have already formed integration teams that are dedicated to rapidly achieving the benefits of this transaction and ensuring a smooth integration. As these teams move further along in the due diligence process, we have become more confident in the strategic value of this acquisition. This is an exciting time for Ferro, as we have the opportunity to truly transform the Company and strengthen our future.”

https://www.chemeurope.com/en/news/4123/ferro-corporation-on-track-to-close-company-s-largest-acquisition.html