Under the terms of the agreement, an affiliate of Platinum Equity will acquire the businesses’ assets. Completion of the transaction is expected in the fourth quarter and is subject to customary closing conditions, including receipt of required regulatory approvals.
“This transaction is a significant milestone in PPG’s continued transformation to focus on coatings and specialty products, and it will significantly reduce PPG’s exposure to the U.S. automotive market,” said Charles E. Bunch, PPG chairman and chief executive officer. “This sale will also provide us with more resources to pursue profitable growth in coatings, aerospace, optical products and opportunities in Asia.”
Bunch added that the divestiture puts the auto glass businesses in a better position to compete by providing a strong platform from which they can maximize profitable growth.
“Moving ahead,” Bunch noted, “we will continue the strategic review our portfolio of businesses with the ongoing objectives of maximizing profitable growth, cash generation and shareholder value.”
The automotive OEM glass business unit supplies windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers. The ARG and services business unit 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 subsidiary.
The automotive glass businesses manufacture and fabricate automotive glass products in nine North American plants located in Berea, Ky.; Creighton, Meadville and Tipton, Pa.; Crestline, Ohio; Evansville, Ind.; Evart, Mich.; and Hawkesbury and Oshawa, Ont., 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. Combined, the businesses employ approximately 4,400 people.