PPG Industries has signed an agreement with Platinum Equity of Beverly Hills, CA, under which the company would divest its automotive OEM glass and automotive replacement glass (ARG) and services businesses. The total sales price for the businesses being divested is approximately $500 million.
“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 CEO. “This sale will also provide us with more resources to pursue profitable growth in coatings, aerospace, optical products and opportunities in Asia.”
Shortly after, PPG also signed an agreement with ZaCh System S.p.A., the fine chemicals subsidiary of Zambon Company S.p.A., Milan, Italy, under which the company would divest its fine chemicals business for approximately $65 million. Completion of the transaction is expected in the fourth quarter.
“Following the recent announcement of our potential divestiture of our auto glass businesses, this transaction is yet another step toward achieving PPG’s vision of continuing to be the leading coatings and specialty products and services company,” said Charles E. Bunch, PPG chairman and CEO.