Business Combinations

12 Months Ended

Dec. 31, 2011

Business Combinations [Abstract]

Business Combinations

18. Business Combinations

In April 2010, Ferro Corporation and W.C. Heraeus GmbH (“Heraeus”) acquired from each other certain business lines related to decoration materials for ceramic and glass products. We acquired Heraeus’ ceramic color business, which advances our position in the ceramic colors industry, while Heraeus acquired assets related to our business operations in precious metal preparations and lustres for the decoration of glass, ceramics, porcelain, and tile. Ferro recognized a pre-tax gain of $8.3 million consisting of a $5.6 million gain from remeasuring to fair value the assets transferred to Heraeus and a $6.1 million bargain purchase gain from the fair value of the net assets acquired exceeding the fair value of the consideration transferred, less a $3.4 million write-off of related goodwill. The gain is included in miscellaneous expense (income), net.

In December 2010, Ferro Corporation acquired a business in Egypt with a newly constructed ceramic coatings plant. The new plant will allow us to more cost-effectively serve the growing tile manufacturing market in Egypt and other countries in the Middle East and North Africa.

The following table summarizes the consideration transferred and the amounts of the assets acquired and liabilities assumed at the acquisition dates of these transactions:

	(Dollars in thousands)
Fair value of consideration transferred
Cash	$	6,938
Inventories		1,089
Property, plant and equipment		164
Amortizable intangible assets		5,417
Total	$	13,608
Recognized amounts of identifiable assets acquired and liabilities assumed
Cash	$	6,856
Accounts receivable		1,399
Inventories		3,776
Property, plant and equipment		6,734
Goodwill		4,038
Amortizable intangible assets		2,156
Current liabilities		(5,003	)
Noncurrent liabilities		(258	)
Total	$	19,698

Subsequent changes in our estimates of fair value or the amounts of any asset and liability adjustments, both as of the acquisition dates, were not material. Changes in the Company’s revenues and earnings as if these business combinations had occurred on January 1, 2009, were immaterial.