PPG to Acquire ICI Business
PITTSBURGH — PPG Industries Inc. announced an agreement to acquire ICI plc’s refinish-coatings, industrial coatings and Grow Automotive solvents and thinners businesses for approximately $684 million (U.S.). The acquisition, which is subject to regulatory approvals, does not include business units in India, Pakistan and Sri Lanka, due to complexities that include local ownership interests, PPG said.
The businesses to be acquired include a variety of powder and liquid industrial coatings assets in Latin America and Asia in addition to Grow Automotive, based in North America. Also included is a refinish-coatings manufacturing facility in the U.K.
PPG General Manager of Refinishes Douglas C. Hepper said the acquisition will strengthen the company’s multi-brand strategy in the auto-refinishes segment while expanding the business geographically. The addition of ICI’s industrial-coatings business will expand PPG’s market presence in South America and Asia, and the Grow Automotive business will broaden the company’s product portfolio for automotive assembly operations, Hepper said. The businesses being acquired reported combined sales of approximately $4,459 million in 1998, with employment of 2,850.
ICI Chairman Charles Miller Smith said the automotive-refinish business lacked the size needed to achieve a global leadership position, and said the sale “enables us to focus on enhancing our strong position in our core paints business.” The company said proceeds from the sale would be used to reduce debt. The agreement with PPG follows ICI’s recent announcement of plans to sell several chemicals units, including its Tioxide titanium-dioxide business, to Huntsman Chemical Co.