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[November 2000]
Ferro Signs Agreement to Acquire Pfanstiehl Laboratories
Ferro Corporation has announced that it has signed a definitive agreement to acquire Pfanstiehl Laboratories, Inc., located in Waukegan, Illinois. Terms of the agreement were not disclosed. The transaction is expected to be completed in Ferro's fourth quarter ending December 31, 2000.
Pfanstiehl Labs produces a broad range of fine chemicals, including advanced pharmaceutical intermediates and active pharmaceutical ingredients as well as dietary supplements and food and cosmetic additives. Pfanstiehl also has specialized custom synthesis capabilities for producing high potency active ingredients. All products are made under "current good manufacturing practices" (cGMP), a qualification necessary for producing pharmaceutical ingredients. Annual sales are approximately $35 million. Pfanstiehl has a talented and experienced management team that will stay with the business and production will be maintained at the Waukegan manufacturing facility.
Hector R. Ortino, chairman and chief executive officer of Ferro, said, "We continue to focus on developing a larger presence in our fastest growing markets of electronic materials and performance and fine chemicals. The acquisition of Pfanstiehl Labs represents a solid complement to our existing performance and fine chemicals operations and a key step forward in our plans to develop a core business in this area."
Ferro noted that the market for independently produced fine chemical ingredients for drugs is growing rapidly, in part because of the ongoing trend at pharmaceutical companies to outsource chemical production and instead to focus on drug discovery and marketing. This trend, combined with Pfanstiehl's advanced technology and specialized manufacturing capability, has driven strong growth in the company's business.
Kent H. Lee, Jr., Ferro's senior vice president of chemicals, commented, "Strategically, Pfanstiehl Labs offers us technology that complements our existing performance and fine chemicals business. The key benefits of the acquisition include greater market access to pharmaceutical customers, a solid track record of FDA compliance and specialized cGMP manufacturing capabilities. We are also pleased to retain such a strong management team with the business."
Ferro Corporation is a major international producer of performance materials for industry, including coatings, chemicals and plastics. The Company has operations in 20 countries and recorded sales of $1.36 billion in 1999. For more information on Ferro, visit the Company's Web site at: www.ferro.com
ENDS