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PPG to acquire AkzoNobel North American architectural coatings business



  PPG to acquire AkzoNobel North American architectural coatings business

Company also announces 2013 share repurchase intentions

  * Acquisition more than doubles North American architectural coatings
    presence; extends presence in all three architectural distribution
    channels; expands North American company-owned store network to
    approximately 1,000
  * Share repurchases of between $500 million and $750 million expected in
    2013

Business Wire

PITTSBURGH -- December 14, 2012

PPG Industries (NYSE: PPG) today announced that it has reached a definitive
agreement to acquire the North American architectural coatings business of
AkzoNobel, N.V., Amsterdam, in a deal valued at $1.05 billion. The transaction
has been approved by the boards of directors of both companies and is expected
to close in early second quarter 2013, subject to regulatory approvals.

“This acquisition continues the accelerated pace of our business portfolio
transformation through further expansion of our coatings businesses,” said
Charles E. Bunch, PPG chairman and CEO. “It is also an attractive way to
significantly increase our scale in the North American architectural paint
market, which we anticipate will benefit from a prolonged construction market
recovery.”

Ton Büchner, CEO of AkzoNobel, said, “Over the past four years, the team has
done a great job in turning the North American Decorative Paints business
around. I am pleased that we have found a respected company to take over the
business. This agreement is a good outcome for all stakeholders.”

Bunch said the acquired business had 2011 revenues of about $1.5 billion and
“notably expands our customer reach in all three major North American
architectural paint distribution channels.” The acquisition includes the
addition of about 600 AkzoNobel-owned paint stores creating a combined network
of about 1,000 company-owned stores serving the North American market. “It
also complements PPG's national home center strategy by extending our branded
paint product offerings to more than 8,000 retail outlets,” he added,
referencing AkzoNobel- and PPG-branded retail paint products, “and finally, it
enhances our already strong presence in the independent paint dealer channel.”

The acquisition includes all AkzoNobel North American architectural coatings
manufacturing and distribution facilities, paint stores, product lines and
employees related to the production, sale and distribution of architectural
coatings in the United States, Canada and the Caribbean.

Leading brands included are GLIDDEN(R), FLOOD(R), LIQUID NAILS(R), SICO(R) and
CIL(R). PPG also will license the following brands: DULUX(R), DEVOE(R)
architectural coatings, and SIKKENS(R) architectural wood products.

“We expect to achieve significantly improved net operating earnings of about
$160 million for the acquired business over a three-year period, including a
$60 million improvement immediately upon closing and a total of $90 million by
the end of the first year,” Bunch added.

The $60 million improvement anticipated upon closing includes costs that will
not be incurred by PPG relating to defined benefit pension expense,
amortization expense relating to prior AkzoNobel acquisitions and various
administrative costs that will not transfer to PPG. The expected incremental
savings of $30 million by the end of the first year and an additional $70
million by the end of the third year following the acquisition include cost
synergies stemming from overlap in administration, distribution and
manufacturing, the company said.

“Additionally, and in recognition of our strong cash position, we plan to
reinitiate our share repurchase program immediately following the completion
of the separation of our commodity chemicals business, which we expect to
occur in early 2013,” Bunch said. “We anticipate a base level of spending
between $500 million and $750 million for share repurchases during 2013.

“The acquisition of the AkzoNobel North American architectural coatings
business and planned share repurchases are both consistent with PPG’s
long-standing heritage of growing our earnings and returning additional cash
to our shareholders. We will still have an elevated level of cash even when
considering these two defined uses of cash, and we expect to continue to
pursue further earnings-accretive cash deployment actions during 2013,” Bunch
concluded.

About AkzoNobel and Its North American Architectural Coatings Business

AkzoNobel is a leading global paints and coatings company and a major producer
of specialty chemicals. It supplies industries and consumers worldwide with
innovative products and is passionate about developing sustainable answers for
its customers. Headquartered in Amsterdam, the Netherlands, AkzoNobel is
consistently ranked as one of the leaders in the area of sustainability. With
operations in more than 80 countries, AkzoNobel’s 55,000 people around the
world are committed to excellence and delivering TOMORROW’S ANSWERS TODAY(TM).

The company’s North American architectural coatings business is currently
reported in the AkzoNobel parent company’s Decorative Paints segment. It
currently operates more than 300 company stores in the United States,
approximately 240 in Canada and about 50 in the Caribbean. In addition to its
strong U.S. architectural coatings position, AkzoNobel is the leading
architectural coatings company in Canada and one of the leaders in the
Caribbean. The business employs about 5,000 people and has a number of
manufacturing locations across the U.S. and Canada.

PPG: BRINGING INNOVATION TO THE SURFACE.(TM)

PPG Industries' vision is to continue to be the world’s leading coatings and
specialty products company. Through leadership in innovation, sustainability
and color, PPG helps customers in industrial, transportation, consumer
products, and construction markets and aftermarkets to enhance more surfaces
in more ways than does any other company. Founded in 1883, PPG has global
headquarters in Pittsburgh and operates in more than 60 countries around the
world. Sales in 2011 were $14.9 billion. PPG shares are traded on the New York
Stock Exchange (symbol:PPG). For more information, visit www.ppg.com.

Conference Call and Webcast Details

PPG will provide a presentation regarding the acquisition via conference call
today, Dec. 14, at 9 a.m. ET. The conference call dial-in numbers are: in the
United States, 866-362-4832; international, 617-597-5364; passcode 53850910.
The conference call also will be available in listen-only mode via Internet
broadcast from the Investor Center of PPG’s website at
www.ppg.com/corporate/investorcenter. A telephone replay will be available
today, Dec. 14, beginning at approximately 11 a.m. ET, through Friday, Dec.
28, at 11:59 p.m. ET. The dial-in numbers for the replay are: in the United
States, 888-286-8010; international, 617-801-6888; passcode 38999670. A web
replay also will be available on PPG’s Investor Center.

Additional Information for Journalists

Members of the media are invited to visit a special website for additional
information and images related to today's announcement at 
http://ppg.online-pressroom.com.

Forward-Looking Statements

This press release contains certain statements about PPG Industries, Inc.,
that are “forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These matters involve risks and
uncertainties as discussed in PPG’s periodic reports on Form 10-K and Form
10-Q and its current reports on Form 8-K filed from time to time with the
Securities and Exchange Commission.

The forward-looking statements contained in this press release may include
statements about the expected effects on PPG of the acquisition of the North
American architectural coatings business of AkzoNobel (the “Transaction”), the
anticipated timing and benefits of the Transaction, including expected
synergies, the expected timing and level of share repurchases in 2013, and
PPG’s anticipated financial results, and also include all other statements in
this press release that are not historical facts. Without limitation, any
statements preceded or followed by or that include the words “targets,”
“plans,” “believes,” “expects,” “intends,” “will,” “likely,” “may,”
“anticipates,” “estimates,” “projects,” “should,” “would,” “could,”
“positioned,” “strategy,” “future,” or words, phrases or terms of similar
substance or the negative thereof, are forward-looking statements.

These statements are based on the current expectations of the management of
PPG and are subject to uncertainty and to changes in circumstances and involve
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied in such forward-looking statements. In
addition, these statements are based on a number of assumptions that are
subject to change. Such risks, uncertainties and assumptions include: the
satisfaction of the conditions to the Transaction and other risks related to
the completion of the Transaction and actions related thereto; PPG’s and
AkzoNobel’s ability to complete the Transaction on the anticipated terms and
schedule, including the ability to obtain regulatory approvals; risks relating
to any unforeseen liabilities, future capital expenditures, revenues,
expenses, earnings, synergies, economic performance, indebtedness, financial
condition, losses and future prospects; business and management strategies and
the expansion and growth of PPG’s operations; PPG’s ability to integrate the
acquired assets successfully after the closing of the Transaction and to
achieve anticipated synergies; and the risk that disruptions from the
Transaction will harm PPG’s businesses. 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.

Forward-looking statements included herein are made as of the date hereof, and
PPG undertakes no obligation to update publicly such statements to reflect
subsequent events or circumstances.

                            –121214NAArchCtgsAcq–

Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.

The following are trademarks and/or registered trademarks of AkzoNobel and its
related entities and used in this document: Cil, Devoe, Dulux, Flood, Glidden,
Liquid Nails, Sico, Sikkens, Tomorrow’s Answers Today.

Contact:

PPG Corporate Communications
Jeremy Neuhart, 412-434-3046
neuhart@ppg.com
or
Investors:
PPG Investor Relations
Vince Morales, 412-434-3740
vmorales@ppg.com
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