PITTSBURGH--(BUSINESS WIRE)--Jun. 20, 2016--
PPG (NYSE:PPG) today announced that it has signed an agreement for the
sale of its European fiber glass operations to glass manufacturer Nippon
Electric Glass Co. Ltd. (NEG). The transaction is subject to completion
of employee consultation processes, receipt of regulatory clearances and
other customary closing conditions. PPG and NEG expect to close the
transaction in the second half of 2016. Financial terms were not
disclosed.
PPG employs approximately 550 people in its European fiber glass
operations, which include manufacturing facilities in Hoogezand,
Netherlands, and Wigan, England, and a research-and-development facility
in Hoogezand. In 2015, sales for PPG’s European fiber glass operations
were approximately $150 million. Upon completion of the transaction, PPG
will continue to support the manufacturing operations with certain
services, including bushing fabrication and engineering support.
PPG’s European fiber glass business manufactures reinforcement materials
for thermoset and thermoplastic composite applications. It serves the
transportation, energy, infrastructure and consumer markets.
“As part of NEG, these European fiber glass operations will continue to
provide innovative solutions in this industry,” said Viktor Sekmakas,
PPG executive vice president. “Upon completion of the transaction, NEG
will take ownership of a business in which PPG has consistently invested
to drive innovation in fiber glass technology, resulting in high-quality
products. PPG remains focused on serving the needs of our fiber glass
customers throughout this transaction.”
Net cash proceeds from the transaction will be used for general
corporate purposes, according to PPG.
PPG: WE PROTECT AND BEAUTIFY THE WORLD™
At PPG (NYSE:PPG), we work every day to develop and deliver the paints,
coatings and materials that our customers have trusted for more than 130
years. Through dedication and creativity, we solve our customers’
biggest challenges, collaborating closely to find the right path
forward. With headquarters in Pittsburgh, we operate and innovate in
more than 70 countries and reported net sales of $15.3 billion in 2015.
We serve customers in construction, consumer products, industrial and
transportation markets and aftermarkets. To learn more, visit www.ppg.com.
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 timing of
and expected benefits of the NEG transaction. Actual events may differ
materially from current expectations and are subject to a number of
risks and uncertainties, including the satisfaction of the conditions of
the transaction and other risks related to completion of the transaction
and actions related thereto; the parties’ ability to complete the
transaction on the anticipated terms and schedule, including the ability
to obtain regulatory approval and the outcome of the employee
consultation processes; PPG Industries’ use of the cash proceeds from
the transaction; 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.
We protect and beautify the world is a trademark and the PPG
Logo is a registered trademark of PPG Industries Ohio, Inc.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160620005477/en/
Source: PPG
For PPG:
Media:
Mark Silvey, 412-434-3046
Corporate
Communications
silvey@ppg.com
or
Investors:
Scott
Minder, 412-434-3466
Investor Relations
sminder@ppg.com
www.ppg.com/investor