Ameron International Corporation has announced that the comapny has agreed to sell its worldwide performance coatings and finishes business to PPG Industries. The transaction is expected to be completed within 30 to 45 days, subject to the terms of the agreement and following regulatory review in Europe.
"We are pleased with the anticipated sale of Coatings," said James Marlen, Ameron's chairman, president and CEO. "The exit from coatings will allow us to redeploy resources to Ameron's three remaining consolidated businesses, where we have leadership positions. Ameron will remain a solid, focused company with enhanced growth opportunities in the infrastructure, water and energy sectors, through its fiberglass-composite pipe, water transmission and tnfrastructure products businesses and TAMCO, Ameron's 50%-owned venture, which is the largest manufacturer of steel rebar in California.
"Coatings no longer fits our strategic objectives,” said Marlen. “In recent years, the financial performance of Ameron's coatings business did not meet expectations, partly due to difficult conditions in global markets. Also, consolidations within the coatings industry provided larger companies with greater economies of scale and constrained Ameron's ability to grow." Coatings had sales of $210 million in 2005.
Ameron will sell the worldwide coatings business, while retaining certain real properties currently used by coatings. Ameron will receive $115 million, plus working capital adjustments, for the business acquired by PPG.