It was reported that PPG Industries has signed an agreement with an affiliate of funds managed by private equity firm Kohlberg & Company, LLC, of New York, under which PPG will divest its automotive glass and services business to a new company formed by Kohlberg. PPG will receive US$ 330M in gross cash proceeds plus a minority ownership interest of approximately 40% in the new company, subject to closing adjustments. Net of payments to former minority interests, transaction fees, expenses and taxes, the transaction will result in approximately US$ 270M in cash to PPG. "This transaction is another positive step forward in our portfolio transformation", said Charles E. Bunch, PPG chairman/CEO. "It enables us to focus more on coatings and specialty products, and significantly reduces PPG's exposure to the US automotive market." The company said the net cash proceeds from the transaction will be used for general corporate purposes.
