Prince Is in Talks for Asset Sales to Help Close Ferro Deal

(Bloomberg) -- Prince International Corp. is exploring divesting some porcelain enamel assets as part of its $2.1 billion acquisition of Ferro Corp., according to people with familiar with the matter.

The Houston-based chemical company is working with an adviser on asset sales aimed at easing potential antitrust concerns, the people said, asking not to be identified because the discussions are private. 

The combined company has significant market concentration in the U.S. porcelain enamel market since Ferro and Prince sell similar products, the people added.  

No plans are finalized and a divestiture isn’t guaranteed, the people added.

The porcelain enamel assets up for sale generate about $20 million in annual earnings before interest, taxes, depreciation, and amortization, and has attracted interest from a few private equity firms, the people said.

A representative for Prince declined to comment. A representative for Ferro did not respond to request seeking comment.

In May, American Securities-backed Prince agreed to buy Ferro, a Cleveland, Ohio-based global supplier of technology-based functional coating and color solutions, for $22 per share in cash or approximately $2.1 billion, according to a statement.

Shares in Ferro were trading at $20.87 at 1:15 p.m. in New York, at a roughly 5.4% discount to Prince’s offer.

On July 29, the merger parties received a second request from the U.S. Federal Trade Commission seeking for additional information and documentary materials in connection with its review of the merger.

The deal is anticipated to close during the first quarter of 2022. It also needs governmental antitrust or merger control approvals in specific jurisdictions including the European Union and China, according to the company’s filings.

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