Ferro acquires Dip Tech
Ferro Corporation has acquired Dip Tech Ltd., a leading provider of digital printing solutions for glass coatings headquartered in Kfar Saba, Israel.
Ferro paid $60.0 million, excluding customary adjustments and fees for Dip-Tech.
Operating and commercial synergies
Ferro believes that its strength in developing inks and related raw materials, together with Dip-Tech’s technology, IP and established global success, provide numerous operating and commercial synergies. The company expects the transaction to be accretive to earnings in 2018 based on year-one synergy-adjusted EBITDA, which is forecasted to be in a range of $6 million to $7 million. Ferro expects a Return on Invested Capital of more than 15% within the first five years of the acquisition.
Dynamic innovation and optimisation
Peter Thomas, Chairman, President and CEO of Ferro Corporation, said, “This acquisition aligns very well with Ferro’s next phase of our value creation strategy: dynamic innovation and optimisation. It equips us with a patent-protected digital glass printing business that generates gross margins at the high end of our Performance Colours & Glass portfolio. Dip-Tech’s digital glass printing technology is attracting customers because of the high-precision, multicoloured effects possible with durable glass-based inks, along with greater production flexibility and efficiency.”
