Asian PPG Industries Ltd. to Acquire Auto Refinish Business of ICI India Ltd.
PITTSBURGH--PPG Industries has signed a Memorandum of Understanding with ICI India Ltd., Mumbai, India, to facilitate the acquisition of ICI’s premium automotive refinish business. Upon closing, the business would be acquired by Asian PPG Industries Ltd., a 50 percent joint venture of PPG and Asian Paints Ltd., also of Mumbai. The closing is scheduled for mid-March and is subject to certain conditions. The transaction is valued at approximately $12 million.
“This acquisition will serve as a platform for continued growth of our automotive refinish business in India, which we manage through our joint venture, Asian PPG Industries Ltd.,” said J. Rich Alexander, senior vice president, coatings, for PPG and a director of Asian PPG Industries. “It also fits well with our strategy to pursue growth in emerging regions.”
ICI India Ltd.'s premium refinish business includes the "2K" brand and employs approximately 60 people in India.
“This is a ‘win-win’ deal for all stakeholders which can immensely benefit the customers of the Nexa 2K range of products,” said M. R. Rajaram, wholetime director, ICI India Ltd. “PPG will get a great platform to further consolidate their leadership position in the auto refinish segment and ICI can focus on its aggressive growth strategy in other areas.”
About PPG
Pittsburgh-based PPG is a global supplier of coatings, chemicals, glass and fiber glass. The company employs nearly 34,000 people and has 125 manufacturing facilities and equity affiliates in more than 20 countries. Sales in 2006 were $11 billion. PPG shares are traded on the New York and Philadelphia stock exchanges (symbol: PPG). For more information, visit www.ppg.com.
About Asian PPG Industries Limited
Asian PPG Industries is a 50 percent venture between Asian Paints, India’s largest paint company, and PPG Industries, Inc., U.S.A. This joint venture has been operational in India for nearly a decade.
Forward-Looking Statement
Statements contained herein relating to matters that are not historical facts are forward-looking statements reflecting PPG’s current view with respect to future events and financial performance. These matters involve risks and uncertainties that may affect PPG’s operations, as discussed in PPG’s filings with the Securities and Exchange Commission pursuant to Sections 13(a), 13(c) or 15(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder. Accordingly, many factors may cause actual results to differ materially from the forward-looking statements contained herein. Such factors include the potential inability of the parties to negotiate and complete definitive transaction documents, secure required approvals or consents or otherwise to complete the pending acquisitions in a timely manner, increasing price and product competition by foreign and domestic competitors, fluctuations in cost and availability of raw materials and energy, the ability to maintain favorable supplier relationships and arrangements, economic and political conditions in international markets, foreign exchange rates and fluctuations in such rates, and the unpredictability of existing and possible future litigation, including litigation that could result if the asbestos settlement discussed in PPG's filings with the SEC does not become effective. 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.
Consequences of material differences in results compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on PPG’s consolidated financial condition, operations or liquidity. All information in this news release speaks only as of Feb. 20, 2007, and any distribution of this news release after that date is not intended and will not be construed as updating or confirming such information.