Ferro Corporation, a leading global provider of functional coatings and colour solutions, has acquired Endeka Group and Gardenia Quimica in a move that will broaden its portfolio of products in the high-end tile market.
Ferro has entered into a definitive agreement to acquire Endeka Group, a global producer of high-value coatings and key raw materials for the ceramic tile market.
In a separate transaction, Ferro has acquired a majority interest in Gardenia Quimica, which also supplies the ceramic tile market.
Both privately held companies are headquartered near Ferro’s facilities in Castellón, Spain, a major hub of the worldwide ceramics market.
Ferro’s acquisition of Endeka for approximately €64M (approximately US$75M) is subject to customary closing conditions and is expected to be completed in the fourth quarter.
Endeka produces frits and glazes, digital inks and colours used in the manufacture of a broad range of ceramic products, including tile, tableware and sanitaryware.
This transaction backward-integrates Ferro into certain key raw materials used in the manufacture of ceramic coating materials.
Endeka has approximately 340 employees who work in nine facilities in Europe and Asia.
The Gardenia Quimica transaction was completed on August 3, 2017.
Gardenia Quimica has 26 employees and produces mediums, additives, binders, and other ancillary products for the tile coatings industry.
Gardenia’s products enable Ferro to further backward-integrate into a number of materials used by Ferro and its customers in the manufacture of tile coating products.
The transaction resulted in Ferro increasing its ownership in the joint venture company from a minority to a majority position.
Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, "These transactions will strengthen our Performance Coatings business by providing multiple opportunities for us to optimise manufacturing operations and cash conversion and to further innovate within our ceramic coating products portfolio.
"Over the past few years, we have moved our tile-oriented portfolio up the value chain, focusing on the high end of the market.
"At the same time, we have driven operating efficiencies and product innovation to ensure that our customers receive the highest quality products and services.
"Endeka Group and Gardenia Quimica complement our previously announced acquisition of SPC, a high-end tile coatings manufacturer based in Italy.
"These businesses allow Ferro to deliver more innovative products to the highest end of the global tile market.
"Endeka is a business that has impressed us for quite some time.
"Its primary production site in Castellon will provide Ferro with necessary production capacity in Spain, enabling us to avoid capital expenditures to expand our existing facilities there.
"The opportunity to backward integrate into key raw materials and other complementary products allows us to broaden our product portfolio for customers, and to add manufacturing productivity.
"We are excited to work with the Endeka and Gardenia teams. We look forward to working with them to accelerate efficiency and innovation throughout our operations and to build on our market leadership positions.”
