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[May 2003]
Ferro to Divest Specialty Ceramics Business
Ferro Corporation (Cleveland, OH, USA) has announced that it has signed a definitive agreement to sell its Specialty Ceramics business to the investment group CerCo LLC. The divestiture follows a recent announcement that Ferro made regarding its intention to divest several small non-core businesses. The business has been reported as a discontinued operation since the third quarter of 2002.
The Specialty Ceramics business manufactures and sells ceramic grinding media, kiln furniture, wear tile and structural ceramics to market segments ranging from tableware and pottery to power generation and transmission. Sales in 2002 were approximately US$40 million. The sale to CerCo includes manufacturing operations in East Liverpool, OH, USA (kiln furniture); Crooksville, OH, USA (specialist and wear resistant ceramic materials); and the CTI plant in Castellbisbal, Catalunya, Spain (grinding media, linings etc).
Ferro's Chairman and CEO Hector Ortino said: "This divestiture, along with the sale of our Powder Coatings business and a string of acquisitions made since 1998, represent our continued efforts to reposition and improve the growth profile of Ferro's portfolio in accordance with our Leadership Agenda strategy. As always in these situations, we are committed to a smooth transition for all the employees impacted by the sale".
The company will use the net proceeds to reduce debt levels. Hector Ortino added: "Our focus going forward is to promote organic growth and improve earnings through operational excellence. This includes leveraging technology and market opportunities across businesses and regions while strengthening supply chain management and productivity across the company. These organic growth objectives will be complemented with acquisitions through time".
ENDS