Ferro 2001 Annual Report - The Right Acquisitions

WITH SEVEN AQUISITIONS in the past four years, Ferro has expanded its most rapidly growing businesses, strengthened its more mature businesses and enhanced its worldwide leadership in a variety of markets. These acquisitions have added significantly to the Company's annual revenue base and helped balance its portfolio better. In recent years, acquisitions have doubled the size of Ferro's polymer additives business and strengthened its position in electronic materials and fine chemicals for pharmaceuticals.

By far, the most strategic transaction to date has been the dmc² acquisition, which was completed in September 2001. This acquisition has transformed Ferro into a world leader in ceramic and metal materials used for components in electronic products such as laptop computers and cellular phones; a leading producer of metallic lusters and other materials for high-end china and decorative ware; and a leading manufacturer of specialty glass materials used for applications such as the rear-window defrosters on automobiles (see photos shown above).

In Electronic Material Systems, the dmc² acquisition has brought new capabilities allowing Ferro to serve electronic component manufacturers that want to use less-expensive base metals, such as nickel and copper, to replace platinum and palladium. The acquisition also expanded Ferro's electronic materials business globally to include operations in Japan and Europe.

In addition, the dmc² acquisition has strengthened Ferro's Tile Coating Systems business and expanded its presence in Asia and Southern Europe. In Color and Glass Performance Materials, the acquisition more than doubled the size of the business, strengthened its product line and expanded its geographic capabilities.