PITTSBURGH (AP) -- PPG Industries Inc., a paint and chemical maker, said Tuesday it will divest its auto glass and services business to a new company formed by private-equity firm Kohlberg & Co. LLC.
PPG said it will receive $330 million in cash plus a minority ownership interest of about 40 percent in the new company.
The company said it will likely receive a total of about $270 million in cash, once transaction fees, expenses and taxes are taken out of the proceeds.
PPG said it will use the proceeds for general corporate purposes.
The deal will allow PPG to focus more on its coatings and specialty products businesses and will reduce its exposure to the U.S. automotive market.
In its second quarter, PPG said it will record a one-time charges related to the deal totaling about $25 million aftertax.
The company said it will record a slight book gain when the deal closes, which is expected to happen in the third quarter.
PPG shares rose 20 cents to $55.85 in trading after the opening bell.