Sep 18 2007
PPG Industries has signed an agreement with ZaCh System S.p.A., the fine chemicals subsidiary of Zambon Company S.p.A., Milan, Italy, under which the company would divest its fine chemicals business for approximately $65 million.
The transaction would include a book charge to income of less than $0.15 per share. Completion of the transaction is expected in the fourth quarter and is subject to customary closing conditions, including discussions with appropriate employee representative bodies in Europe and receipt of required regulatory approvals.
“Following last week’s announcement of our potential divestiture of our auto glass businesses, this transaction is yet another step toward achieving PPG’s vision of continuing to be the leading coatings and specialty products and services company,” said Charles E. Bunch, PPG chairman and chief executive officer.
“The acquisition of PPG’s fine chemicals business is consistent with Zambon Company’s continuing desire to expand its global presence,” said Gianni Marini, ZaCh System board chairman and Zambon Company board member. “We are quite pleased to acquire a PPG business that is recognized as a technology leader, with manufacturing locations in Europe and the United States, reinforcing our custom synthesis business strategy and the value of Zambon research competence.”
PPG facilities included in the agreement are a pharmaceutical fine chemicals plant in LaPorte, Texas, and the PPG-Sipsy facility in Avrille, France. The pharmaceutical fine chemicals plant in LaPorte operates separately from PPG’s adjacent phosgene derivatives facility there, of which PPG will retain operation. The fine chemicals business employs approximately 360 people.
Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company employs nearly 34,000 people and has 125 manufacturing facilities and equity affiliates in more than 25 countries. Sales in 2006 were $11 billion. PPG shares are traded on the New York and Philadelphia stock exchanges (symbol: PPG).
http://www.ppg.com