Nippon Paint (USA) Inc. a subsidiary of Nippon Paint Co., Ltd. of Osaka, Japan, has reached an agreement with Protech Chemicals Ltd. to sell the powder coating business of NPA Coatings Inc. (NPAC), also known as Seibert Powder Coatings.
Seibert Powder Coatings is a division of NPAC, a wholly owned subsidiary of NP-USA, located in Cleveland, Ohio. Terms of the asset sale were not disclosed. The transaction is expected to be finalized by November 15, 2013. Protech plans to continue to manufacture powder paint at the Cleveland facility and offer employment to the vast majority of current employees.
In commenting on the announcement, Hidefumi Morita, President of NP-USA and CEO of NPAC, stated, "The sale of Seibert Powder Coatings is consistent with Nippon Paint's management strategy which seeks to focus on growing its core businesses. We are very pleased that we are able to sell our powder paint segment to Protech, a company sincerely committed to continuing to provide quality powder paint to the market."
NPAC's liquid paint division will continue to supply paint and coatings to its OEM and Tier automotive customers. "We will continue to focus on providing the highest quality paint to our existing automotive customers while seeking to expand our business throughout North America," said Morita.