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Paints Maker Ferro Agrees to $22-Share Bid by Prince International

Paints producer Ferro jumped after agreeing to be purchased by Prince International for $22 a share cash.
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Paints producer Ferro  (FOE) - Get Report jumped after agreeing to be purchased by Prince International for $22 a share cash.

The terms call for Prince, a portfolio company of American Securities, to pay $22 a share for the Mayfield Heights, Ohio, company. 

Including assumption of debt and net of Ferro's cash, the deal value is $2.1 billion.

The purchase price reflects a 25% premium to Ferro's Monday closing price of $17.58. 

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At last check Ferro shares were trading up 23% at $21.57.

American Securities is the New York private-equity firm.

Ferro's five-phase transformation strategy created "a leader in functional coatings and color solutions focused on high-growth markets," Ferro Chief Executive Peter Thomas said. 

Ferro's board approved the terms. The company expects the transaction to close in the first quarter of 2022.

Ferro also reported that in the first quarter it earned an adjusted 37 cents a share, topping the Wall Street consensus estimate of 23 cents derived from a FactSet survey. 

Revenue of $288 million beat the estimate of $260 million. 

"Optimization initiatives throughout the company" contributed to the first-quarter results, Thomas said. 

Ferro supplies functional coatings for glass, metal, ceramic and other substrates. Its products are sold into the building and construction, automotive, electronics, industrial products, household furnishings and appliance markets.