Transaction closing imminent
PITTSBURGH--(BUSINESS WIRE)--Oct. 31, 2014--
PPG Industries (NYSE:PPG) today announced that it has received a
favorable ruling from Mexico’s Federal Economic Competition Commission
on its previously announced agreement to acquire Consorcio Comex, S.A.
de C.V. (“Comex”). PPG announced June 30 that it had reached a
definitive agreement to acquire Comex in a transaction valued at $2.3
billion. PPG received approval from the National Foreign Investment
Commission of Mexico in mid-October.
“We are pleased to have received all the necessary government approvals
for the Comex acquisition and expect to close the transaction in the
next several days,” said Charles E. Bunch, PPG chairman and CEO. "We are
excited to grow our business in Mexico, a vibrant country with an
expanding economy. We look forward to growing in the region with Comex
customers and employees.”
Bunch commented that the company anticipates the acquisition will result
in 65 cents to 75 cents of earnings-per-share accretion in 2015,
excluding non-recurring acquisition-related expenses and any
transaction-related financing costs. He also mentioned that the company
expects acquisition-related synergies of $30 million to $40 million will
be achieved over a two-year period.
The company indicated it plans to fund the transaction primarily from
cash on hand, but it may utilize debt to finance a portion of the $2.3
billion purchase price. The company reported cash and short-term
investments of $3.0 billion at the end of the third quarter.
Comex is a privately-held architectural and industrial coatings company
with headquarters in Mexico City. The company manufactures coatings and
related products in Mexico and sells them in Mexico and Central America
through more than 3,700 stores that are independently owned and operated
by more than 700 concessionaires. Comex also sells its products through
regional retailers and wholesalers, and directly to customers. The
company has approximately 3,900 employees, eight manufacturing
facilities and six distribution centers, and it had sales of
approximately $1 billion in 2013. Comex was founded in 1952.
Members of the media can find additional information at http://newsroom.ppg.com.
PPG: BRINGING INNOVATION TO THE SURFACE.™
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. Reported 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
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Forward-Looking Statements
This news release contains certain statements about PPG Industries,
Inc., that are “forward-looking statements” within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. These matters
involve risks and uncertainties as discussed in PPG’s periodic reports
on Form 10-K and Form 10-Q and its current reports on Form 8-K filed
from time to time with the Securities and Exchange Commission.
The forward-looking statements contained in this news release may
include statements about the timing of the anticipated closing of the
acquisition of Consorcio Comex, S.A. de C.V. (the “Transaction”), the
expected benefits of the Transaction, the anticipated earnings-per-share
accretion, acquisition-related synergies, the sources of funds used, and
all other statements in this news 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; the parties’ ability to
complete the Transaction on the anticipated terms; 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 business 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 PPG
Industries Ohio, Inc.
Source: PPG Industries, Inc.
PPG Industries, Inc.
Media:
PPG Corporate Communications
Mark
Silvey, 412-434-3046
silvey@ppg.com
or
Investors:
PPG
Investor Relations
Vince Morales, 412-434-3740
vmorales@ppg.com