US Ferro sells pharmaceutical segment to PLI Holdings

01 April 2013 16:54  [Source: ICIS news]

HOUSTON (ICIS)--US specialty chemicals producer Ferro has sold its pharmaceuticals business to PLI Holdings, Ferro announced on Monday.

Ferro divested itself of Pfanstiehl Laboratories for a $16.9m (€13.2m) cash payment and an earn-out incentive payment of up to $8m, payable over two years based on attained earnings targets, Ferro said in a press release.

Also, Ferro retained certain tax benefits with an estimated value of about $5m.

Pfanstiehl Laboratories generated segment income of $2.4m in 2012, Ferro said.

The divestiture follows the company’s 6 February sale of its solar pastes assets to Germany-based precious metals and technology company Heraeus as Ferro seeks to drive earnings growth from its performance materials and chemicals businesses.

PLI Holdings is an affiliate of Med Opportunity Partners, a US-based private equity firm.

Ferro’s continued restructuring comes at a time when US plastics compounds and resins firm A Schulman is attempting a hostile takeover of the company. A Schulman has hired an investment bank to advise it in its attempt.

($1 = €0.78)

By: Jeremy Pafford
+1 713 525 2653

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