PPG and Bain Capital Sign Agreement for Sale of SigmaKalon
Thursday October 4, 9:10 am ET
Process Continues on Schedule
PITTSBURGH--(BUSINESS WIRE)--PPG Industries today announced that its offer to acquire SigmaKalon Group, a worldwide coatings producer, from global private investment firm Bain Capital has been accepted. PPG and Bain Capital signed a Sale and Purchase Agreement upon the completion of discussions with appropriate employee representative bodies.
The total transaction value, including assumed debt, is approximately EUR 2.2 billion. The acquisition continues to be subject to receipt of regulatory approvals.
"The process of consulting with and obtaining advice from the relevant employee representative bodies was cooperative and constructive," said Michael H. McGarry, Vice President, Coatings, and Managing Director, PPG Europe. "As a result, we completed this phase of the process and are now seeking approvals from several regulatory agencies in Europe and elsewhere."
Based in Uithoorn, Netherlands, SigmaKalon produces architectural, protective, marine and industrial coatings, and is a leading coatings supplier in Europe and other key markets across the globe. The acquisition would give PPG a stronger, more balanced coatings business in Europe.
"We are pleased with how the sale process has progressed, and continue to be pleased with management's efforts to move the business forward," said Steve Barnes, Managing Director at Bain Capital based in Boston. "SigmaKalon has very successfully developed over the last four years into a best-in-class global coatings company, and we believe the combination with PPG will allow the company to continue - and in some areas accelerate - its successful strategy," added Walid Sarkis, a Managing Director at Bain Capital based in London.
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. Sales in 2006 were $11 billion. PPG shares are traded on the New York and Philadelphia stock exchanges (symbol: PPG).
About Bain Capital
Bain Capital is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity and leveraged debt assets with approximately $50 billion in total assets under management. Since its inception in 1984, Bain Capital has made private equity investments and add-on acquisitions in over 250 companies around the world including such industrial and consumer products manufacturing companies as Brenntag, FCI, Sealy, Bombardier Recreational Products, Novacap, Innophos, Boart Longyear and FCI. Headquartered in Boston, Bain Capital has offices in London, New York, Munich, Tokyo, Hong Kong and Shanghai.
Source: PPG Industries
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