Chemicals Maker Ferro to Explore Potential Sale

(Bloomberg) -- Ferro Corp., a maker of coatings for everything from dinnerware to windows, is exploring strategic options, including a sale, according to people familiar with the matter.

The Mayfield Heights, Ohio-based company is working with financial advisers, said the people, who asked to not be identified because the matter isn’t public. No final decision has been made and Ferro could opt to remain independent, the people said.

Ferro’s shares rose more than 12% on the news. The stock was up 8% to $13.72 at 1:25 p.m. in New York trading, giving the company a market value of about $1.1 billion.

A representative for Ferro didn’t respond to requests for comment.

Ferro is exploring a sale amid heavy consolidation among chemical companies with coatings operations, as tepid growth and volatile commodity prices spurs industry players to pair up. Car-paint maker Axalta Coating Systems Ltd. is exploring a sale while chemicals maker Celanese Corp. is undertaking a strategic review that could include a breakup, people familiar with those matters have said.

Ferro has been in the takeover spotlight before. It received a takeover approach in 2016 from Apollo Global Management after an activist investor in its stock said it should explore a sale, people familiar with the matter said at the time.

Incorporated in 1919, Ferro makes coatings and other products for manufacturers of automobile parts, construction materials, auto parts and electronic components, according to its website. Its products are used for coloring as well as improving texture and durability.

To contact the reporters on this story: Kiel Porter in Chicago at kporter17@bloomberg.net;Myriam Balezou in London at mbalezou@bloomberg.net

To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, ;Dinesh Nair at dnair5@bloomberg.net, Matthew Monks, Michael Hytha

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