Believing the incorporation of Ferro would provide a “powerful platform to enable profitable and sustainable growth”, A. Schulman said it was encouraging Ferro shareholders to ask the board to re-examine its bid. A. Schulman wrote to Ferro on 13 February 2013 expressing its "strong intent" in pursuing a merger, but this was rejected by the Ferro board which believed the company should remain independent.
The proposed acquisition at USD 6.50 per share represents a 25% premium over the closing price of Ferro’s common stock on 1 March, and a 32% premium over the volume-weighted average trading price in the preceding 60 days. If accepted, half would be paid in cash, and half in shares of A. Schulman common stock. A. Schulman estimated that combining the two companies would generate annual savings of USD 35m more than Ferro’s previously announced target of USD 50m.
Joseph Gingo, A. Schulman-CEO said: “A. Schulman and Ferro are both recognized leaders in specialty chemicals with value-added product lines, similar business models, complementary competencies, markets and applications. We believe our combination will deliver superior value to our respective shareholders and offer better value to customers.”
Ferro Corporation is a leading global supplier of technology-based performance materials that enhance product performance in various end-markets including construction, automotive, appliances, electronics, household furnishings, pharmaceuticals and industrial products.