PPG Industries has reached agreement to acquire the Performance Coatings & Finishes business of Ameron International Corporation, Calif. Completion of the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals, which are expected within 30-45 days. Ameron's Performance Coatings & Finishes business employs around 700 people & had sales of US$210M/05. The purchase price is US$115M plus working capital adjustment. The company operates manufacturing sites in the US, Europe, Australia & New Zealand, in addition to warehouses & offices around the world, some of which would remain with Ameron after the sale. The agreement also includes Ameron's 40% ownership in Oasis-Ameron Ltd, located in Saudi Arabia, subject to the majority shareholders' approval. The acquisition expands PPG's protective coatings business into Europe & Australia, and it will enable the company to participate in the marine coatings market. In addition, PPG has acquired the remaining 50-percent share of Dongju Industrial Co., Ltd., from its partners led by Dongju chairman Yeong Kil Sohn. PPG has owned 50 percent of Dongju since 1985 and has accounted for this investment under the equity method of accounting. Dongju serves the automotive original equipment manufacture (OEM), refinish, industrial and packaging coatings segments in South Korea. Dongju has manufacturing locations in Chon Ahn and Busan, South Korea. T
