PPG Industries has signed an agreement with Kohlberg & Company, LLC, Mount Kisco, N.Y., under which PPG will divest its automotive glass and services business to a new company formed by Kohlberg.
PPG will receive $330 million in gross cash proceeds plus a minority ownership interest of approximately 40% in the new company. Net of payments to former minority interests, transaction fees, expenses and taxes, the transaction will result in approximately $270 million in cash to PPG.
"This transaction is another positive step forward in our portfolio transformation," said Charles Bunch, PPG chairman and CEO. "It enables us to focus more on coatings and specialty products, and significantly reduces PPG's exposure to the U.S. automotive market."
The company stated the net cash proceeds from the transaction will be utilized for general corporate purposes.
