Upon closing, the business would be acquired by Asian PPG Industries Ltd., a 50 percent joint venture of PPG and Asian Paints Ltd., also of Mumbai. The closing is scheduled for mid-March and is subject to certain conditions. The transaction is valued at approximately $12 million.
“This acquisition will serve as a platform for continued growth of our automotive refinish business in India, which we manage through our joint venture, Asian PPG Industries Ltd.,” said J. Rich Alexander, senior vice president, coatings, for PPG and a director of Asian PPG Industries. “It also fits well with our strategy to pursue growth in emerging regions.”
ICI India Ltd.'s premium refinish business includes the "2K" brand and employs approximately 60 people in India.
“This is a ‘win-win’ deal for all stakeholders which can immensely benefit the customers of the Nexa 2K range of products,” said M. R. Rajaram, wholetime director, ICI India Ltd. “PPG will get a great platform to further consolidate their leadership position in the auto refinish segment and ICI can focus on its aggressive growth strategy in other areas.”