PITTSBURGH--(BUSINESS WIRE)--Apr. 1, 2014--
PPG Industries, Inc. (NYSE:PPG) today announced the successful
completion of the previously announced sale to Essilor International of
its 51 percent ownership interest in its Transitions Optical joint
venture and PPG’s wholly-owned sunlens business. Essilor International
had held a 49 percent interest in the Transitions Optical joint venture.
As previously indicated, the transaction reflects an enterprise value of
approximately $3.4 billion, with PPG receiving cash at closing of $1.73
billion pre-tax or approximately $1.5 billion after-tax, subject to
certain post-closing adjustments and transaction costs. In 2013, the
Transitions Optical joint venture and sunlens business had combined net
sales of $874 million.
Currently, all Transitions Optical sales are consolidated in PPG’s
financial statements. Essilor’s minority share of the joint venture’s
net earnings is reflected as a reduction to PPG’s net income and
presented in the financial statements as “income attributable to
non-controlling interests.” In accordance with Generally Accepted
Accounting Principles (GAAP), the Transitions Optical joint venture and
sunlens business results will be classified as “Discontinued Operations”
in future PPG financial releases. Prior periods will be recast to
conform to this presentation. In addition, PPG has updated its 2014 tax
rate guidance on ongoing earnings from continuing operations, with the
company now anticipating this rate to be in the range of 23.5 percent to
24.5 percent.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries'
vision is to continue to be the world’s leading coatings and specialty
materials company. Through leadership in innovation, sustainability and
color, PPG helps customers in industrial, transportation, consumer
products, and construction markets and aftermarkets to enhance more
surfaces in more ways than does any other company. Founded in 1883, PPG
has global headquarters in Pittsburgh and operates in nearly 70
countries around the world. Net sales in 2013 were $15.1 billion. PPG
shares are traded on the New York Stock Exchange (symbol: PPG). For more
information, visit www.ppg.com
and follow @PPGIndustries
on Twitter.
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 expected after-tax cash proceeds to be
received by PPG Industries and PPG Industries’ tax rate on ongoing
earnings from continuing operations. Actual events may differ materially
from current expectations and are subject to a number of risks and
uncertainties 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.
Bringing innovation to the surface is a trademark of PPG
Industries Ohio, Inc.
Source: PPG Industries, Inc.
PPG Industries, Inc.
Media:
Mark Silvey,
412-434-3046
PPG Corporate Communications
silvey@ppg.com
or
Investors:
Vince
Morales, 412-434-3740
PPG Investor Relations
vmorales@ppg.com