Jul 3 2006
PPG Industries has reached agreement to acquire the Performance Coatings and Finishes business of Ameron International Corporation, Pasadena, Calif.,. 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.
http://www.ppg.com
Posted 3rd July 2006