PPG to Buy Ameron Coatings Unit

Date: 1 July 2006
Source: PPG.com

Date: 1 July 2006

PPG Industries (NYSE:PPG) has reached agreement to acquire the Performance Coatings and Finishes business of Ameron International Corporation, Pasadena, Calif., (NYSE:AMN).

Completion of the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals, which are expected within 30 to 45 days.

Ameron’s Performance Coatings and Finishes business employs approximately 700 people and had sales of US$210 million in 2005. The purchase price is US$115 million plus working capital adjustment. The company operates manufacturing sites in the United States, Europe, Australia and New Zealand, in addition to warehouses and offices around the world, some of which would remain with Ameron after the sale.The agreement also includes Ameron’s 40-percent ownership in Oasis-Ameron, Ltd., located in Saudi Arabia, subject to the majority shareholders’ approval. The acquisition expands PPG’s protective coatings business into Europe and Australia, and it will enable the company to participate in the marine coatings market.

In addition, PPG has acquired the remaining 50-percent share of Dongju Industrial Co., Ltd., from its partners led by Dongju chairman Yeong Kil Sohn. PPG has owned 50 percent of Dongju since 1985 and has accounted for this investment under the equity method of accounting. Dongju serves the automotive original equipment manufacture (OEM), refinish, industrial and packaging coatings segments in South Korea. Dongju has manufacturing locations in Chon Ahn and Busan, South Korea. Terms for the Dongju acquisition were not disclosed.

PPG estimates that the company will increase its reported coatings revenues by approximately US$400 million, or 7 percent, on an annual basis as a result of the two acquisitions.

“These acquisitions demonstrate our strategy to focus on coatings and expand into new markets and emerging regions,” said Chuck Bunch, chairman and chief executive officer of PPG. “They complement our existing coatings businesses and give us a platform from which to accelerate our growth. With Ameron’s capabilities, technology and brand names, we’ll now have a global presence in protective coatings and will be able to penetrate the marine coatings market. By acquiring the remaining interest in Dongju, we will be able to strengthen our presence in the Asian coatings market and substantially improve our supply chain efficiencies in the region.”

Pittsburgh-based PPG is the world's leading manufacturer of transportation coatings, a global supplier of industrial and packaging coatings, and a leading producer of architectural coatings, primarily in North America. In addition, PPG manufactures flat and fabricated glass, continuous-strand fiber glass and chemicals. Sales were US$10.2 billion for 2005.

600450 PPG to Buy Ameron Coatings Unit glassonweb.com

See more news about:

Others also read

An all-time great, heat-treated for player and fan safety.
Largest glass producer in North America doubles down on partnership, long-term thinking.
New STEM education facility at Carnegie Science Center targeted to open in 2018.
PPG has designed and produced windows for the Breakthrough Laminar Aircraft Demonstrator in Europe (BLADE), a Clean Sky Smart Fixed Wing Aircraft Integrated Technology Demonstrator (SFWA ITD).
PPG reaches agreement with Nippon Electric Glass for sale of remaining fiberglass operations.
PPG and Vision Systems have reached a commercial agreement to work together on developing new applications utilizing Vision Systems’ electronically dimmable window shading solutions for aircraft.

Add new comment