PPG to acquire BASF North American coil, extrusion coatings business
Acquisition demonstrates PPG commitment to key coatings segmentPITTSBURGH, Sept. 25, 2008 –
PPG Industries (NYSE:PPG) today 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. Terms were not disclosed.
BASF’s North American COEX business serves the construction; appliance; transportation; heating, ventilation and air conditioning (HVAC); lighting fixture; and extrusion industries. The business operates manufacturing sites in Decatur, Ala., and Monterrey, Mexico, as well as a production line in Belvidere, N.J. The business employs approximately 200 people.
PPG will acquire saleable BASF inventory, customer list and book of business as well as various patents and trade names associated with acquired products. BASF will continue to supply products from Decatur, Belvidere and Monterrey under a Manufacturing Supply Agreements for 11 to 12 months, after which 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.
“PPG is intent on retaining the technical and sales capabilities of BASF,” said William A. Wulfsohn, PPG senior vice president, coatings. “As a result, the combination of BASF and PPG will better enable us to provide innovative technologies, high-quality products and superior customer service.”
Wulfsohn said the company is committed to ensuring that customers continue to receive excellent products and services while PPG and BASF work through the integration process.About PPG
Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com