Ameron International said Thursday it will sell its Performance Coatings and Finishes business to PPG Industries for $115 million.
The coatings business employs about 700 people and had sales of $210 million in 2005, operating manufacturing sites in the United States, Europe, Australia and New Zealand, in addition to warehouses and offices around the world, some of which would remain with Ameron after the sale.
The agreement also includes Ameron's 40-percent ownership in Oasis-Ameron, Ltd., located in Saudi Arabia, subject to the majority shareholders' approval. The acquisition expands PPG's protective coatings business into Europe and Australia, and it will enable the company to participate in the marine coatings market.
Meanwhile, PPG also said it has acquired the remaining 50-percent share of Dongju Industrial Co., Ltd., from its partners led by Dongju chairman Yeong Kil Sohn. PPG has owned 50 percent of Dongju since 1985. Dongju serves the automotive original equipment manufacture, refinish, industrial and packaging coatings segments in South Korea. Dongju has manufacturing locations in Chon Ahn and Busan, South Korea.
Terms for the Dongju acquisition were not disclosed.
PPG estimates that the company will increase its reported coatings revenues by approximately $400 million, or 7 percent, on an annual basis as a result of the two acquisitions.
"These acquisitions demonstrate our strategy to focus on coatings and expand into new markets and emerging regions," said Chuck Bunch, chairman and chief executive officer of PPG. "They complement our existing coatings businesses and give us a platform from which to accelerate our growth. With Ameron's capabilities, technology and brand names, we'll now have a global presence in protective coatings and will be able to penetrate the marine coatings market. By acquiring the remaining interest in Dongju, we will be able to strengthen our presence in the Asian coatings market and substantially improve our supply chain efficiencies in the region."
Pittsburgh-based PPG is a manufacturer of transportation coatings, and supplies industrial and packaging coatings. Ameron manufactures highly-engineered products and materials for the chemical, industrial, energy, transportation and infrastructure markets.