PPG Industries has reached an agreement to acquire the Performance Coatings and Finishes business of Ameron International Corp., Pasadena, Calif., for a purchase price of US$115 million plus working capital adjustment. The business operates manufacturing sites in the U.S., Europe, Australia and New Zealand, in addition to warehouses and offices around the world, some of which would remain with Ameron after the sale. The agreement also includes Ameron's 40% ownership in Oasis-Ameron, Ltd., located in Saudi Arabia, subject to the majority shareholders' approval.
PPG has also acquired the remaining 50% share of Dongju Industrial Co., Ltd., from its partners led by Dongju chairman Yeong Kil Sohn. PPG has owned 50% of Dongju since 1985 and has accounted for this investment under the equity method of accounting. Dongju serves the automotive original equipment manufacture (OEM), refinish, industrial and packaging coatings segments in South Korea. Dongju has manufacturing locations in Chon Ahn and Busan, South Korea. Terms for the Dongju acquisition were not disclosed.
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PPG to Acquire Ameron Coatings Business
August 4, 2006