PPG acquires Spectra-Tone Paint Corp., agrees to acquire Protec Pty. Ltd.
Company continues to execute growth strategy for coatings business PITTSBURGH, Aug. 3, 2006
– PPG Industries (NYSE:PPG) has acquired Spectra-Tone Paint Corporation, San Bernardino, Calif.
Spectra-Tone is an architectural paint and coatings manufacturer distributing products mainly through 22 company-owned service centers in the western United States. Spectra-Tone employs approximately 160 people and has its primary manufacturing location in San Bernardino. PPG operates only three service centers in the geographic areas where Spectra-Tone is present.
In addition, PPG has reached agreement to acquire Protec Pty. Ltd., Adelaide, Australia, and all assets of Fortec Paints Ltd., Protec’s New Zealand business. The transaction is expected to close late this month.
Protec is a manufacturer and distributor of automotive refinish coatings, and light industrial and high performance coatings, serving Australia and New Zealand. The company employs approximately 214 people, has one manufacturing facility in Adelaide and operates 14 company-owned service centers.
Terms for these acquisitions were not disclosed.
PPG also completed its previously announced acquisition of the Performance Coatings and Finishes business of Ameron International Corporation, Pasadena, Calif., (NYSE:AMN). The business employs approximately 700 people, and had sales of US$210 million in 2005. The company operates manufacturing sites in the United States, Europe, Australia and New Zealand, in addition to warehouses and offices around the world.
“We are continuing to implement our growth plan in coatings by making strategic acquisitions,” said Rich Alexander, senior vice president, coatings. “Spectra-Tone will enhance our architectural coatings presence in the western United States, Protec will enable us to enhance our position as the technical coatings leader in Australia and New Zealand, and with Ameron’s capabilities, we’ll have a global presence in protective and marine coatings.”
Pittsburgh-based PPG is the world's leading manufacturer of transportation coatings, a global supplier of industrial and packaging coatings, and a leading producer of architectural coatings, primarily in North America. In addition, PPG manufactures flat and fabricated glass, continuous-strand fiber glass and chemicals. Sales were US$10.2 billion for 2005.
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 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 August 3, 2006, and any distribution of this news release after that date is not intended and will not be construed as updating or confirming such information.