PPG Reaches Agreement to Acquire Comex
PITTSBURGH – PPG Industries announced yesterday that it has reached a definitive agreement to acquire Consorcio Comex, S.A. de C.V. (Comex), an architectural and industrial coatings company with headquarters in Mexico City, Mexico. The transaction is valued at $2.3 billion and is subject to regulatory approvals and customary closing conditions.
Comex manufactures coatings and related products in Mexico and sells them in Mexico and Central America through approximately 3,600 stores that are independently owned and operated by more than 700 concessionaires. Comex also sells its products through regional retailers, wholesalers and direct sales to customers. The company has approximately 3,900 employees, eight manufacturing facilities and six distribution centers, and had sales of approximately $1 billion in 2013. Comex is a privately held company that was founded in 1952.
Charles E. Bunch, PPG Chairman and CEO, said that PPG plans to fund the acquisition primarily using currently held cash and short-term investments, but he indicated that the company may fund a portion of the purchase price through the addition of debt. Bunch added that excluding non-recurring acquisition-related costs the deal will be immediately accretive to earnings, and that the company anticipates acquisition-related synergies of 3 to 4 percent of acquired sales will be achieved over a two-year period.