PPG Industries announced an offer to purchase SigmaKalon Group, a worldwide coatings producer based in Uithoorn, Netherlands, from global private investment firm Bain Capital. The total transaction value, including assumed debt, is €2.2 billion. Bain Capital has granted a period of exclusivity to PPG Industries and intends to respond to the offer after discussions with appropriate employee representative bodies. Should Bain Capital accept the offer, the acquisition would be subject to customary conditions, including receipt of regulatory approval.
"The SigmaKalon business has performed well financially and would be a strong complement to our existing coatings businesses," said Charles E. Bunch, chairman and chief executive officer of PPG. "It would give us an excellent footprint in the European architectural coatings segment, where today we have very nominal participation. This acquisition would give us a more balanced coatings business in Europe, approximately doubling our European sales, and expand our global coatings portfolio by more than 40%."
Bunch added that the acquisition would also strengthen PPG's participation in higher growth markets, such as Southern and Central Europe, Africa and Asia, and fits well with PPG's growing presence in protective and marine coatings, spurred by several other recent acquisitions.