Ferro Corporation Completes Sale of Powder Coatings Business

01-Oct-2002

CLEVELAND, Sep 30, 2002 -- Ferro Corporation announced today that it has completed the sale of its powder coatings business unit. The sale consisted of two separate transactions with Akzo Nobel N.V. and Rohm and Haas Company. Akzo Nobel purchased the operations in the Americas and the Asia-Pacific region, while Rohm and Haas purchased the operations in Europe.

Hector R. Ortino, Ferro chairman and chief executive officer stated, "The divestiture of Powder Coatings is an extension of the Leadership Agenda strategy we adopted in 1999 and represents our continued efforts to reposition Ferro's portfolio. The transformation of the portfolio, which also includes eight acquisitions over the last four years, has significantly strengthened the growth profile of our core businesses."

The sale is valued at approximately $160 million for Ferro, including the assumption of certain liabilities by the acquiring parties. Sales for the Powder Coatings business were approximately $175 million in 2001.

Ortino further commented, "The divestiture proceeds will help to further reduce debt and strengthen the balance sheet following a period of significant investment. The improved portfolio and strong balance sheet enhances our overall ability to create sustainable, profitable growth for our shareholders."

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