PPG to acquire SigmaKalon for $3.04 billion

21 July 2007

Mumbai: Paint and coatings manufacturer PPG Industries Inc. will acquire Dutch coatings company SigmaKalon Group from Bain Capital LLC for €2.2 billion ($3.04 billion).

Pittsburgh-based PPG Industries edged out rival bidders such as Sherwin-Williams Co. of the US to win the battle for Europe''s second-largest coatings maker after Akzo Nobel NVS.

Under an auction run by UB, PPG Inc will assume an unknown amount of debt of Uithoorn, Netherlands-based SigmaKalon.

SigmaKalon Group has a network of 500 company-owned stores and 3,000 independent wholesalers. It had revenues of €2 billion in 2006.

PPG expects the deal to boost sales of coatings, its largest business, by more than 40 per cent.

PPG is the world''s biggest maker of coatings for cars and planes. It made $480 million in acquisitions in coatings and optical products last year. The purchase of SigmaKalon would double paint sales in Europe and boost revenue in faster-growing markets such as Africa and Asia, PPG said.