PPG Receives Favorable Ruling from Fed. Economic Competition Comm. of Mexico on Comex Acquisition

PPG Industries has received a favorable ruling from Mexico’s Federal Economic Competition Commission on its previously announced agreement to acquire Consorcio Comex, S.A. de C.V. PPG announced June 30, that it had reached a definitive agreement to acquire Comex in a transaction valued at $2.3 billion. PPG received approval from the National Foreign Investment Commission of Mexico in mid-October.

“We are pleased to have received all the necessary government approvals for the Comex acquisition and expect to close the transaction in the next several days,” said Charles E. Bunch, PPG chairman and CEO. “We are excited to grow our business in Mexico, a vibrant country with an expanding economy. We look forward to growing in the region with Comex customers and employees.”

Bunch commented that the company anticipates the acquisition will result in 65-to-75 cents of earnings-per-share accretion in 2015, excluding non-recurring acquisition-related expenses and any transaction-related financing costs. He also mentioned that the company expects acquisition-related synergies of $30 million-to-$40 million will be achieved over a two-year period.

The company indicated it plans to fund the transaction primarily from cash on hand, but may utilize debt to finance a portion of the $2.3 billion purchase price. The company reported cash and short-term investments of $3.0 billion at the end of the third quarter.

Comex is a privately-held architectural and industrial coatings company with headquarters in Mexico City, Mexico. The company manufactures coatings and related products in Mexico and sells them in Mexico and Central America through more than 3,700 stores that are independently owned and operated by more than 700 concessionaires. Comex also sells its products through regional retailers and wholesalers, and directly to customers. The company has approximately 3,900 employees, eight manufacturing facilities and six distribution centers, and had sales of approximately $1 billion in 2013. Comex was founded in 1952.