PPG Industries has completed the sale of its automotive glass and services business to Pittsburgh Glass Works LLC.
In July, PPG said it would sell its entire flat glass-making division to Pittsburgh Glass Works LLC, a new company formed earlier this year by funds managed by Kohlberg & Company, LLC, in Mount Kisco, N.Y.
PPG received approximately $270 million in net proceeds from the transaction, which included customary closing adjustments, the company said. The sale included PPG receiving $8.1 million from Pittsburgh Glass Works LLC for the Greenwood Township flat glass-making plant, according to a deed recorded in the Crawford County Register and Recorders Office. The local plant has about 250 employees.
In addition to the $270 million, PPG has a 40 percent minority ownership interest in Pittsburgh Glass Works LLC.
PPG decided to sell the glass business to focus on its more profitable coatings and specialty products and related service businesses.
The agreement came after a September 2007 attempt by PPG to sell its auto glass business eventually failed.
PPG was going to sell the unit to Beverly Hills, Calif.-based Platinum Equity. But Platinum’s affiliates halted the $500 million deal and later filed a lawsuit over a $25 million termination fee.
Once that deal fell through, PPG vowed to continue pursuing a sale or restructuring of its auto glass business.
The automotive glass and services business supplies automotive windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers, and it 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 subsidiary, and e-business solutions through its GLAXIS division.
Pittsburgh Glass Works manufactures and fabricates automotive glass products in nine North American plants located in Meadville, Creighton and Tipton in Pennsylvania; Berea, Ky.; Crestline, Ohio; Evansville, Ind.; Evart, Mich.; and Hawkesbury and Oshawa, Ontario, 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.
The business employs approximately 4,400 people.