PPG to sell auto glass businesses to focus on coatings, specialty products

PITTSBURGH — PPG Industries has signed an agreement with Platinum Equity of Beverly Hills, Calif., under which the company would divest its automotive original equipment manufacturer (OEM) glass and automotive replacement glass (ARG) and services businesses. The total sales price for the businesses being divested is approximately $500 million before minority interest.

Under the terms of the agreement, an affiliate of Platinum Equity will acquire the businesses’ assets. Completion of the transaction is expected in the fourth quarter.

“This transaction is a significant milestone in PPG’s continued transformation to focus on coatings and specialty products, and it will significantly reduce PPG’s exposure to the U.S. automotive market,” says Charles E. Bunch, PPG chairman and chief executive officer. “This sale will also provide us with more resources to pursue profitable growth in coatings, aerospace, optical products and opportunities in Asia.”

Bunch added that the divestiture puts the auto glass businesses in a better position to compete by providing a strong platform from which they can maximize profitable growth.

The automotive OEM glass business unit supplies windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers. The ARG and services business unit supplies and distributes replacement automotive glass products for use in the aftermarket, and also provides insurance claim services through its LYNX Services subsidiary, glass management software through its GTS subsidiary, and e-business solutions through its GLAXIS subsidiary.

For more information, visit www.ppg.com.