PPG to purchase European coatings company Dyrup
Synergistic acquisition would expand geographic presence, product portfolio
PITTSBURGH, May 5, 2011 – PPG Industries (NYSE: PPG) today announced the signing of a share purchase agreement to acquire Dyrup A/S, a European coatings company based in Copenhagen, Denmark, from its owner, Monberg & Thorsen, a public holding company. The total transaction value, including assumed debt, is around €135 million ($200 million). The transaction is expected to close in the third quarter of this year, subject to regulatory approvals, customary closing conditions and consultation with appropriate employee representative bodies.
Dyrup is a European producer of architectural coatings, in particular wood stains, and specialty products with 2010 sales of approximately €190 million ($270 million). It employs about 950 people and operates six manufacturing facilities in Europe. Dyrup’s strong portfolio of brands (in particular wood stain and paint), including Bondex, Gori and Xylophene, is sold primarily in Denmark, France, Germany, Portugal, Poland and Spain through professional and do-it-yourself channels.
“The acquisition of Dyrup would expand PPG’s European architectural coatings business by extending our geographic presence in the region and by bolstering our wood care product offerings, an end-user segment where we today have a modest presence,” said Pierre-Marie De Leener, PPG executive vice president, Architectural Coatings – EMEA (Europe, Middle East and Africa), and president, PPG Europe.
De Leener said that anticipated synergies, including improved raw material procurement, are expected to result in Dyrup achieving EBITDA margins in the near term that will be at a level consistent with PPG’s existing European architectural business. “Dyrup’s operations and sales channels would be a great complementary fit with PPG’s structure,” he said. “The transaction will expand PPG’s growth in several key countries, including Poland, France and Denmark, and further establish PPG in several regions where we have limited or no architectural coatings presence, especially in Portugal, Spain and Germany.
“We believe this acquisition presents an excellent opportunity for customers of both companies, as well as a means to profitably grow PPG’s European architectural coatings business beyond organic opportunities,” De Leener said.
PPG Industries’ vision is to continue to be the world’s leading coatings and specialty products company. Founded in 1883, the company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, PPG operates in more than 60 countries around the globe. Sales in 2010 were $13.4 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.
Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to the timing and expected benefits of the acquisition. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including the failure to achieve the expected benefits of the acquisition and the other risks and uncertainties discussed in PPG Industries’ periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG Industries does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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