Engineering News

PPG Completes Acquisition of SigmaKalon Group
Wednesday January 2, 11:41 am ET

Accelerates Its Transformation to Focus on Coatings, Specialty Products

PITTSBURGH--(BUSINESS WIRE)--PPG Industries today announced that it had completed the acquisition of SigmaKalon Group, a worldwide coatings producer based in Uithoorn, Netherlands, from global private investment firm Bain Capital. The total transaction value, including assumed debt, was approximately 2.2 billion (US$3.2 billion). The company expects to add approximately $3 billion in sales annually as a result of the acquisition.

This acquisition is strongly aligned with our vision and core strategies, said Charles E. Bunch, chairman and chief executive officer of PPG. With SigmaKalon, we are accelerating our transformation to focus on coatings and specialty products.

Bunch noted that almost three-quarters of the companys sales from continuing operations will now come from coatings, and over 80 percent will come from its coatings, optical and specialty products businesses.

SigmaKalon is a very complementary fit for us, Bunch said. The acquisition will greatly expand our geographic footprint, extend our market presence in various end-use markets, and sharply increase the proportion of sales coming from architectural or decorative coatings.

SigmaKalon produces architectural, protective, marine and industrial coatings. The company operates 22 major manufacturing facilities across Europe and other key markets across the world. It sells architectural coatings directly to professional painters via a network of service centers, approximately 500 company-owned stores and approximately 3,000 independent wholesalers that give it direct access to customers.

Bunch added that the SigmaKalon acquisition gives PPG a strong platform for profitable growth from which it can continue to generate earnings and increase shareholder value.

The acquisition will allow us to capitalize on raw materials procurement and new, additional technologies, he said. And although the acquisition will be dilutive to PPGs earnings in 2008, our goal remains for the acquisition to be accretive to ongoing earnings per share, including all required accounting adjustments, no later than 12 months from now.

Michael McGarry, vice president, coatings, and managing director, PPG Europe, said, PPG has a strong history of effective integration of acquisitions. An efficient integration process will be critical to our reaching the aggressive goals weve set for the business. McGarry added, As we move through the integration process, we remain committed to ensuring that customers continue to receive excellent performance in quality products and services.

About PPG

Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass. The company employs more than 34,000 people and has 125 manufacturing facilities and equity affiliates in more than 25 countries. PPG shares are traded on the New York Stock Exchange (symbol: PPG).

Source: PPG Industries, Inc.

Engineering News Archive


Applicant Procedures
Job Seekers
Resume Help
Professional Organizations
Engineering Career Information
Engineering Colleges

Recruiters for
Professionals in the Chemical
& Pharmaceutical Industries
We recruit exclusively for Engineers and Operations/Maintenance Management Personnel in the following areas:
Specialty chemicals
Bulk chemicals
Commodity Chemicals
Fine chemicals
Industrial gases
Career Center | FAQs | Privacy
SESI Corporate Headquarters (954)755-3121 ext 109
© Search Enterprises, Inc. All rights reserved.
Industry News Career Center FAQs Submit a Job About Search Enterprises Submit a Resume Candidates Job Opportunities Search Enterprises Home