News & Events
|View printer-friendly version|
|PPG to acquire AkzoNobel North American architectural coatings business|
Company also announces 2013 share repurchase intentions
“This acquisition continues the accelerated pace of our business
portfolio transformation through further expansion of our coatings
Ton Büchner, CEO of AkzoNobel, said, “Over the past four years, the team has done a great job in turning the North American Decorative Paints business around. I am pleased that we have found a respected company to take over the business. This agreement is a good outcome for all stakeholders.”
Bunch said the acquired business had 2011 revenues of about
The acquisition includes all AkzoNobel North American architectural
coatings manufacturing and distribution facilities, paint stores,
product lines and employees related to the production, sale and
distribution of architectural coatings in
Leading brands included are
“We expect to achieve significantly improved net operating earnings of
“Additionally, and in recognition of our strong cash position, we plan
to reinitiate our share repurchase program immediately following the
completion of the separation of our commodity chemicals business, which
we expect to occur in early 2013,” Bunch said. “We anticipate a base
level of spending between
“The acquisition of the AkzoNobel North American architectural coatings business and planned share repurchases are both consistent with PPG’s long-standing heritage of growing our earnings and returning additional cash to our shareholders. We will still have an elevated level of cash even when considering these two defined uses of cash, and we expect to continue to pursue further earnings-accretive cash deployment actions during 2013,” Bunch concluded.
About AkzoNobel and Its North American Architectural Coatings Business
AkzoNobel is a leading global paints and coatings company and a major
producer of specialty chemicals. It supplies industries and consumers
worldwide with innovative products and is passionate about developing
sustainable answers for its customers. Headquartered in
The company’s North American architectural coatings business is
currently reported in the AkzoNobel parent company’s Decorative Paints
segment. It currently operates more than 300 company stores in
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
Conference Call and Webcast Details
PPG will provide a presentation regarding the acquisition via conference
Additional Information for Journalists
Members of the media are invited to visit a special website for additional information and images related to today's announcement at http://ppg.online-pressroom.com.
This press release contains certain statements about
The forward-looking statements contained in this press release may include statements about the expected effects on PPG of the acquisition of the North American architectural coatings business of AkzoNobel (the “Transaction”), the anticipated timing and benefits of the Transaction, including expected synergies, the expected timing and level of share repurchases in 2013, and PPG’s anticipated financial results, and also include all other statements in this press release that are not historical facts. Without limitation, any statements preceded or followed by or that include the words “targets,” “plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,” “anticipates,” “estimates,” “projects,” “should,” “would,” “could,” “positioned,” “strategy,” “future,” or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements.
These statements are based on the current expectations of the management of PPG and are subject to uncertainty and to changes in circumstances and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. In addition, these statements are based on a number of assumptions that are subject to change. Such risks, uncertainties and assumptions include: the satisfaction of the conditions to the Transaction and other risks related to the completion of the Transaction and actions related thereto; PPG’s and AkzoNobel’s ability to complete the Transaction on the anticipated terms and schedule, including the ability to obtain regulatory approvals; risks relating to any unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses and future prospects; business and management strategies and the expansion and growth of PPG’s operations; PPG’s ability to integrate the acquired assets successfully after the closing of the Transaction and to achieve anticipated synergies; and the risk that disruptions from the Transaction will harm PPG’s businesses. However, it is not possible to predict or identify all such factors. Consequently, while the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Forward-looking statements included herein are made as of the date hereof, and PPG undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.
Bringing innovation to the surface is a trademark of
The following are trademarks and/or registered trademarks of AkzoNobel
and its related entities and used in this document: Cil, Devoe,