The transaction is expected to close no later than the end of the first quarter 2012, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed.
Colpisa, based in Itagüi, near Medellin, was founded in 1973 and manufactures and distributes coatings for automotive OEM and refinish, industrial and architectural coatings customers in Colombia and Ecuador. Colpisa operates a coatings manufacturing facility in Colombia and employs about 400 people. The company has been a technology licensee of PPG automotive OEM coatings since 1996 and a distributor of PPG automotive refinish products since 2004.
"By acquiring Colpisa, PPG builds on a successful relationship and gains the opportunity to expand our coatings presence in Colombia to directly serve and grow with automotive manufacturers," said Tim Knavish, PPG vice president, automotive OEM coatings, Americas. "PPG intends to build upon Colpisa's strong manufacturing and distribution practices as the Colombian economy expands and more automobiles are built and sold in the region."
According to Knavish, PPG would become the only major global coatings supplier with a direct automotive OEM manufacturing presence in Colombia. PPG currently has no manufacturing sites in Colombia or Ecuador, but does supply protective and marine coatings to the region, in addition to its technology and distribution relationship with Colpisa.
"As an automotive refinish coatings leader, we are pleased to add Colpisa's automotive refinish business to our global portfolio," said John Outcalt, PPG vice president, global automotive refinish. "This acquisition is further evidence of PPG's commitment to grow our coatings presence in Latin America."
According to Outcalt, by acquiring Colpisa, PPG will become one of the leading providers of a full line of automotive refinish products in Colombia with the ability to grow and serve local customers through an established distribution network.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries' vision is to continue to be the world's leading coatings and specialty products company. Through leadership in innovation, sustainability and color, PPG helps customers in industrial, transportation, consumer products, and construction markets and aftermarkets to enhance more surfaces in more ways than does any other company. Founded in 1883, PPG has global headquarters in Pittsburgh and operates in more than 60 countries around the world. Sales in 2010 were $13.4 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.
Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company's current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to the expected benefits of the acquisition. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including the failure to achieve the expected benefits of the acquisition and the other risks and uncertainties discussed in PPG Industries' periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG Industries does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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