Ferro Expands its Colors Solutions Business with Acquisition of Two Businesses

United States: Ferro Corporation has announced plans to acquire Cappelle Pigments, which supplies high-grade organic and inorganic pigments and certain assets of Delta performance products, a manufacturer of pigments and admixture. Sales for the two businesses in 2016 are estimated to be approximately USD76 million in the aggregate and adjusted EBITDA in 2016 is expected to be approximately USD11 million. The acquisition would complement the Ferro’s current inorganic pigments portfolio and would also enable it to enter into concrete pigments and admixtures business. Growing demand for masterbatch in United States is complemented with increasing base of pigments and colorants manufacturers and business operations.

TechSci Research depicts that this acquisition would lead to higher penetration of the Ferro Corporation in the pigments, colorants and admixtures market. Also, increasing penetration in the pigments and colorants business would aid enhanced market growth for masterbatch industry in United States and globally.

According to the recently published report by TechSci Research, “Global Masterbatch Market By Type, By End User, By Region, Competition Forecast and Opportunities, 2011 - 2021”, global masterbatch market size is estimated to cross US$ 16 billion in 2016. Segment-wise, white masterbatch dominated the overall market in 2015, and this trend is anticipated to continue through 2021. During 2016-2021, the demand for masterbatch is anticipated to be largely influenced by packaging and automotive industries, which has started witnessing steady growth on account of rising purchasing power of consumers and expanding middle class population in certain regions.