PPG in Discussions with Essilor Regarding Transitions Optical Joint Venture
PITTSBURGH -- January 14, 2013
PPG Industries, Inc. (“PPG”) is currently in discussions with Essilor
International (“Essilor”) relating to the future of PPG’s and Essilor’s joint
venture, Transitions Optical, a leading provider of photochromic lenses to
optical manufacturers worldwide and a consolidated subsidiary of PPG. PPG is
the majority shareholder in Transitions Optical, which was formed in 1990,
holding a 51 percent interest in the joint venture companies. Essilor holds
the remaining 49 percent interest and is also the largest customer of
Transitions Optical. Transitions Optical accounted for a substantial portion
of the sales and earnings of PPG’s Optical and Specialty Materials reportable
segment in 2012. PPG and Essilor have worked together as business partners for
more than 22 years in connection with Transitions Optical. PPG believes that
both PPG and Essilor have been important contributors to the success that the
Transitions Optical business has achieved.
PPG cannot predict the outcome of the discussions with Essilor with respect to
the future of Transitions Optical; however, PPG believes that possible
outcomes may include (1) a modification of the current joint venture
structure, (2) a sale of all or a portion of PPG’s interests in Transitions
Optical to Essilor, or (3) a sale of all or a portion of Essilor’s interests
in Transitions Optical to PPG. These outcomes may result from a negotiated
transaction or from the exercise of contractual rights that exist between the
parties. Under certain circumstances, which PPG does not believe have yet
occurred, either PPG or Essilor may have the right to specify a price at which
the other party could elect to sell its interests or buy the first party’s
interests in one or more of the Transitions Optical joint venture companies.
PPG also cannot predict the timing of the completion of its discussions with
Essilor but expects that these discussions are likely to continue over the
next several months. There is also no assurance that the parties’ discussions
will result in any of the possible outcomes set forth above. While the
discussions between PPG and Essilor continue, Transitions Optical intends to
continue to operate its business without interruption or change in customer
service. As previously announced, Transitions Optical is on schedule in
expanding its new technology platforms through major new product introductions
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 nearly 70 countries around the
world. Sales in 2012 were $15.2 billion. PPG shares are traded on the New York
Stock Exchange (symbol:PPG). For more information, visit www.ppg.com.
This news 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 news release include
statements about PPG and Essilor’s continuing discussions about the future of
Transitions Optical, a possible transaction between PPG and Essilor, if any,
the outcome and timing of the discussions between PPG and Essilor, the ongoing
operations of Transitions Optical while these discussions continue, and all
other statements in this news 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, including the uncertain outcome and timing of the
discussions between PPG and Essilor, 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. 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
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.
Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
PPG Industries, Inc.
Jeremy Neuhart, PPG Corporate Communications, 412-434-3046
Vince Morales, PPG Investor Relations, 412-434-3740
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