A. Schulman Inc. (Nasdaq: SHLM) wants to buy Ferro Corp. (NYSE: FOE) for $855 million.
The purchase price represents a per share price of $6.50.
Akron, Ohio-based A. Schulman supplies plastic compounds and resins to the packaging, mobility, building, construction, electronics, agriculture and other markets.
Ferro, headquartered in Mayfield Heights, Ohio, supplies materials to manufacturers for the building, construction, automotive, electronics and other industries.
A. Schulman first contacted Ferro in November. It expressed its intent to acquire Ferro in a Feb. 13 letter, and Ferro’s board expressed its belief that the company should remain independent. A. Schulman is asking the company to reconsider.
To raise shareholder value, Ferro has already announced plans to divest non-core businesses, streamline its operations and reduce operating costs, according to its fourth quarter earnings presentation on March 5.