Ferro Said to Draw Final-Round Interest From Apollo, CVCby
Final bids said due this month for U.S. chemicals manufacturer
Ferro Corp. said in May it hired Lazard to explore options
U.S. chemicals manufacturer Ferro Corp. is drawing final-round interest from Apollo Global Management LLC, CVC Capital Partners and Rhone Capital, people with knowledge of the matter said.
The three private equity firms are expected to hand in final offers for Ferro this month, said the people, who asked not to be identified because the information is private.
The shares of the Mayfield Heights, Ohio-based company jumped as much as 8.3 percent in New York. They climbed 4 percent as of 12:46 p.m., giving the company a market value of about $1.1 billion.
In May, Ferro said it hired investment bank Lazard Ltd. to explore strategic alternatives for the company. That followed an unsolicited approach from Apollo in March. The same month, activist investor and Ferro shareholder FrontFour Capital Group LLC released a letter calling for the company to consider a sale.
Ferro makes coatings for products ranging from ceramic tiles and dinnerware to smartphones and cars, according to its website. The company has about 4,860 employees globally and reported 2015 sales of $1.1 billion, the site shows. This year, the company bought Spain-based industrial paints maker Pinturas Benicaro.
A spokesman for CVC declined to comment. Representatives for Ferro, Lazard, Apollo and Rhone didn’t respond to messages seeking comment.