PPG Industries has reached an agreement to acquire the Performance Coatings and Finishes business of Ameron International Corp. Completion of the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals, which are expected within 30 to 45 days. Ameron's Performance Coatings and Finishes business employs approximately 700 people and had sales of $210 million in 2005. The purchase price is $115 million, plus working capital adjustment.
In addition, PPG has acquired the remaining 50% share of Dongju Industrial Co., Ltd., from its partners led by Dongju Chairman Yeong Kil Sohn. PPG has owned 50% 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. Terms for the Dongju acquisition were not disclosed.
PPG estimates that it will increase its reported coatings revenues by approximately $400 million, or 7%, on an annual basis as a result of the two acquisitions. Additional information is available at the link below.