PPG Industries to Buy AkzoNobel Paint Unit for $1.05 Billion

PPG Industries (NYSE: PPG  ) announced today it has entered into a definitive agreement to purchase the North American architectural coatings business of AkzoNobel, an Amsterdam-based paints and chemical producer.

The boards of both PPG and AkzoNobel have approved the deal, valued at $1.05 billion, and it is expected to close in the second quarter of 2013. The transaction must still gain regulatory approval.

PPG Industries CEO Charles Bunch was quoted as saying, "This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses." AkzoNobel's North American business generated revenues of approximately $1.5 billion in 2011. PPG expects the acquisition will generate approximately $160 million in net operating earnings over the next three years, as much as $90 million in the first year.

AkzoNobel's North American architectural coatings business operates more than 300 company stores in the United States, about 240 in Canada and about 50 in the Caribbean.

PPG also announced it intends to reinitiate its share buyback program, anticipating it will spend between $500 million and $750 million for share repurchases during 2013.

link


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 17, 2012, at 9:17 PM, abskii wrote:

    It's not a full purchase of "Akzo Nobel", it's just their ownership of "Glidden House Paints" that is/was owned by Akzo. Akzo Nobel as a company will still exist and their "Industrial Paints and Coatings" in the US should not be affected by the sale.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2155051, ~/Articles/ArticleHandler.aspx, 12/22/2014 8:02:33 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement