In addition, PPG confirmed that Platinum's affiliates filed suit in the Supreme Court of the State of New York, County of New York, alleging that the Platinum group is not obligated to consummate the agreement. While PPG does not comment on the specifics of litigation, the company stated that it intends to vigorously enforce its rights under its agreements with the Platinum group.
PPG also said that, in the event the transaction does not close with the Platinum group, it will continue to explore divestiture, restructuring and other strategic alternatives for the automotive OEM and replacement glass and services businesses with the goal of maximizing shareholder value.
The automotive OEM glass business unit supplies windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers. The ARG and services business unit supplies and distributes replacement automotive glass products for use in the aftermarket. It also provides insurance claim services through its LYNX Services subsidiary, glass management software through its GTS Services subsidiary, and e-business solutions through its GLAXIS subsidiary.
The two automotive glass businesses manufacture and fabricate products in nine North American plants located in Berea, Ky.; Creighton, Meadville and Tipton, Pa.; Crestline, Ohio; Evansville, Ind.; Evart, Mich.; and Hawkesbury and Oshawa, Ont., Canada. In addition, there are nine satellite parts assembly plants, and there are LYNX Services claims management centers in Fort Myers, Fla., and Paducah, Ky. Combined, the businesses employ approximately 4,400 people.
Platinum Equity to Terminate Agreement to Purchase PPG's Auto Glass Businesses
Date: 28 December 2007
Source: PPG
PPG Industries was notified that affiliates of Platinum Equity, Beverly Hills, Calif., intend to terminate, after December 31, 2007, their contract under which they agreed to purchase PPG's automotive original equipment manufacture (OEM) glass and automotive replacement (ARG) glass and services businesses.