The transaction includes the manufacturing assets of Ferro’s South Plainfield, New Jersey facility and the assets of its precious metals powders and flakes business line in Tsukuba, Japan. In September 2013, these precious metals powders and flakes operations had value-added sales of approximately US$23 million.
In addition to the asset sale, Ferro and Ames have also entered into a seven-year supply agreement. Through the agreement, Ferro will secures a reliable source of key raw materials for its downstream businesses.
“The sale of these assets is a result of our continuing business and asset portfolio evaluation process and the harvesting of underperforming and non-core businesses,” said Peter Thomas, president and CEO of Ferro. “This transaction allows us to redeploy assets into attractive growth opportunities.”
The transaction does not include the company’s precious metals business in Hanau, Germany, which produces gold, palladium and platinum precious metal products.
The Ferro South Plainfield site and its approximately 160 employees will become part of Ames while the Ferro Tsukuba site and its employees remain with Ferro.