PPG Ind has signed an agreement with Platinum Equity of Beverly Hills, Calif., under which the company would divest its automotive original equipment manufacture (OEM) glass & automotive replacement glass (ARG) & services businesses. The divestiture reinforces PPG's focus on coatings & specialty products. The total sales price for the businesses being divested is approximately $500M before minority interest. The transaction is expected to result in a slight book gain upon closing & charges to income totaling $0.20-$0.25/share to be recorded over the next few quarters. Under the terms of the agreement, an affiliate of Platinum Equity will acquire the businesses' assets. Completion of the transaction is expected in the fourth quarter & is subject to customary closing conditions, including receipt of required regulatory approvals. "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 chief executive officer. "This sale will also provide us with more resources to pursue profitable growth in coatings, aerospace, optical products and opportunities in Asia." Bunch added that the divestiture puts the auto glass businesses in a better position to compete by providing a strong platform from which they can maximize profitable growth.
