PPG Announces Successful Completion of Sale of Ownership Interest in
Transitions Optical to Essilor International
PITTSBURGH -- April 1, 2014
PPG Industries, Inc. (NYSE:PPG) today announced the successful completion of
the previously announced sale to Essilor International of its 51 percent
ownership interest in its Transitions Optical joint venture and PPG’s
wholly-owned sunlens business. Essilor International had held a 49 percent
interest in the Transitions Optical joint venture.
As previously indicated, the transaction reflects an enterprise value of
approximately $3.4 billion, with PPG receiving cash at closing of $1.73
billion pre-tax or approximately $1.5 billion after-tax, subject to certain
post-closing adjustments and transaction costs. In 2013, the Transitions
Optical joint venture and sunlens business had combined net sales of $874
Currently, all Transitions Optical sales are consolidated in PPG’s financial
statements. Essilor’s minority share of the joint venture’s net earnings is
reflected as a reduction to PPG’s net income and presented in the financial
statements as “income attributable to non-controlling interests.” In
accordance with Generally Accepted Accounting Principles (GAAP), the
Transitions Optical joint venture and sunlens business results will be
classified as “Discontinued Operations” in future PPG financial releases.
Prior periods will be recast to conform to this presentation. In addition, PPG
has updated its 2014 tax rate guidance on ongoing earnings from continuing
operations, with the company now anticipating this rate to be in the range of
23.5 percent to 24.5 percent.
PPG: BRINGING INNOVATION TO THE SURFACE.(TM)
PPG Industries' vision is to continue to be the world’s leading coatings and
specialty materials 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. Net sales in 2013 were $15.1 billion. PPG shares are traded on the New
York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com and
follow @PPGIndustries on Twitter.
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 expected after-tax cash proceeds to be
received by PPG Industries and PPG Industries’ tax rate on ongoing earnings
from continuing operations. Actual events may differ materially from current
expectations and are subject to a number of risks and uncertainties 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.
Bringing innovation to the surface is a trademark of PPG Industries Ohio, Inc.
PPG Industries, Inc.
Mark Silvey, 412-434-3046
PPG Corporate Communications
Vince Morales, 412-434-3740
PPG Investor Relations
Press spacebar to pause and continue. Press esc to stop.