PPG Industries to divest auto glass businesses to Platinum Equity; To focus on coatings, specialty products

15 September 2007

PPG Industries will divest its automotive original equipment manufacture (OEM) glass and automotive replacement glass (ARG) and services businesses to private equity firm Platinum Equity of Beverly Hills, California for approximately $500 million before minority interest.

Pittsburgh-based PPG is a global supplier of industrial coatings, applied coatings, specialty chemicals, commodity chemicals and glass. The company has 125 manufacturing facilities and equity affiliates in more than 25 countries and recorded 2006 sales of $11 billion.

Under the terms of the agreement, an affiliate of Platinum Equity will acquire the businesses'' assets. Completion of the transaction is expected in the fourth quarter and is subject to customary closing conditions, including receipt of required regulatory approvals.

Pittsburgh-based PPG is a global supplier of industrial coatings, applied coatings, specialty chemicals, commodity chemicals and glass. The company has 125 manufacturing facilities and equity affiliates in more than 25 countries and recorded 2006 sales of $11 billion.

The transaction is expected to result in a slight book gain upon closing and charges to income totalling $0.20 to $0.25 per share to be recorded over the next few quarters.
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"This transaction is a significant milestone in PPG''s continued transformation to focus on coatings and specialty products, and it will significantly reduce PPG''s exposure to the US automotive market," said Charles E. Bunch, PPG chairman and chief executive officer. "This sale will also provide us with more resources to pursue profitable growth in coatings, aerospace, optical products and opportunities in Asia."

Bunch added that the divestiture puts the auto glass businesses in a better position to compete by providing a strong platform from which they can maximise profitable growth.