PPG to Acquire BASF's North American COEX Business
PPG Industries has announced it has reached an agreement with BASF Corp. to acquire that company’s North American coil and extrusion coatings (COEX) business.
PITTSBURGH – PPG Industries has announced it has reached an agreement with BASF Corp. to acquire that company’s North American coil and extrusion coatings (COEX) business. The agreement does not include the COEX businesses of BASF SE in Europe, South America and Asia.
BASF’s North American COEX business serves the construction, appliance, transportation, lighting fixture, extrusion and HVAC (heating, ventilation, and cooling) industries. The business operates manufacturing sites in Decatur, AL, and Monterrey, Mexico, as well as a production line in Belvidere, NJ.
PPG will acquire saleable BASF inventory, customer list and book of business as well as various patents and trade names associated with acquired products. Under a manufacturing supply agreement, BASF will continue to supply products from Decatur, Belvidere and Monterrey for 11 to 12 months. After that period, BASF will close the Decatur facility and the Belvidere facility’s Plastisol line.
Production from the Decatur and Belvidere operations will transfer to PPG’s Springdale, PA, plant, where approximately $8 million will be spent to install equipment needed for the consolidation.
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