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.

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