PPG Reaches Agreement with Nippon Electric Glass for Sale of Remaining Fiberglass Operations
May 26 2017 - 6:38AM
Business Wire
PPG (NYSE:PPG) today announced that it has reached a definitive
agreement to sell its remaining fiberglass operations to Nippon
Electric Glass Co. Ltd. (NEG), a leading manufacturer of
fiberglass. The transaction is expected to close in the second half
of 2017, subject to customary closing conditions. Pre-tax proceeds
from the sale are approximately $545 million, and are subject to
customary closing adjustments.
PPG’s remaining fiberglass operations include manufacturing
facilities in Chester, South Carolina, and Lexington and Shelby,
North Carolina; and administrative and research-and-development
operations in Shelby and in Harmar, Pennsylvania, near Pittsburgh.
The business, which employs more than 1,000 people and had net
sales of approximately $350 million in 2016, supplies the
transportation, energy, infrastructure and consumer markets.
In 2016, PPG completed the sale of its European fiberglass
operations to NEG and divested its ownership interests in two Asian
fiberglass joint ventures. PPG also completed the sale of its North
American flat glass business in 2016.
“We considered all of the strategic alternatives for the
business and factored potential impacts to stakeholders. We are
pleased that these operations will become part of NEG, a company
that is focused on fiberglass as a core business,” said Michael H.
McGarry, PPG chairman and chief executive officer. “This
transaction represents the end of PPG’s history as a manufacturer
of fiberglass and is the final action in our disciplined, multiyear
strategy to divest non-core businesses. Going forward, we will
continue to focus on growing our paints, coatings and specialty
materials businesses. I want to personally thank our
fiberglass employees for their contributions and dedicated support
of PPG, and wish them well as they establish the North American
fiberglass business of NEG.”
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the
paints, coatings and materials that our customers have trusted for
more than 130 years. Through dedication and creativity, we solve
our customers’ biggest challenges, collaborating closely to find
the right path forward. With headquarters in Pittsburgh, we operate
and innovate in more than 70 countries and reported net sales of
$14.8 billion in 2016. We serve customers in construction, consumer
products, industrial and transportation markets and aftermarkets.
To learn more, visit www.ppg.com.
Forward-Looking Statements
Statements in this news release relating to matters that are not
historical facts are forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995 reflecting
the company’s current view with respect to future events or
objectives and financial or operational performance or results. The
forward-looking statements contained herein include statements
relating to the timing of and expected benefits of the NEG
transaction. Actual events may differ materially from current
expectations and are subject to a number of risks and
uncertainties, including the satisfaction of the conditions of the
transaction and other risks related to completion of the
transaction and actions related thereto; the parties’ ability to
complete the transaction on the anticipated terms and schedule; and
the other risks and uncertainties discussed in PPG Industries’
periodic reports on Form 10-K and Form 10-Q and its current reports
on Form 8-K filed with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date of their
initial issuance, and PPG Industries does not undertake any
obligation to update or revise publicly any forward-looking
statement, whether as a result of new information, future events or
otherwise.
We protect and beautify the world is a trademark and the PPG
Logo is a registered trademark of PPG Industries Ohio, Inc.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170526005209/en/
PPG Media Contact:Mark Silvey, +1-412-434-3046Corporate
Communicationssilvey@ppg.comorPPG Investor Contact:Scott
Minder, +1-412-434-3466Investor
Relationssminder@ppg.cominvestor.ppg.com
PPG Industries (NYSE:PPG)
Historical Stock Chart
From Aug 2024 to Sep 2024
PPG Industries (NYSE:PPG)
Historical Stock Chart
From Sep 2023 to Sep 2024