Ferro to offload more underperforming assets
Mar 06, 2013 (M&A Navigator via COMTEX) --
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6 March 2013 - US speciality materials and chemicals maker Ferro Corp (NYSE:FOE), which recently rejected plastic compounds and resins supplier A Schulman Inc's (NASDAQ:SHLM) unsolicited takeover bid, will shed more assets which do not deliver satisfactory returns, Ferro said.
Ferro added it planned to trim operating costs by over USD50m (EUR38.3m) over the next two years.
The firm will evaluate bolt-on opportunities to gain a position in emerging markets or geographies and create stockholder value, Ferro's interim CEO Peter Thomas said yesterday, as cited by Reuters.
A Schulman's offer, which included a USD3.25 cash payment and USD3.25m worth of A Schulman stock, corresponds to an enterprise value of some USD855m, A Schulman had said. According to A Schulman, a combination with Ferro would generate annual synergies of USD35m on top of Ferro's projected savings of USD50m.
Target: Unnaned Ferro assets
Buyer: Unnamed buyers.
Vendor: Ferro Corp