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PPG Sells Automotive Glass, Services Unit

Paint and chemical maker has completed the $330 million sale of its automotive glass and services business to Pittsburgh Glass Works LLC.

PITTSBURGH (AP) -- PPG Industries Inc. said Wednesday it has completed the $330 million sale of its automotive glass and services business.

The Pittsburgh-based paint and chemical maker sold the business to Pittsburgh Glass Works LLC, a company formed by funds managed by Mount Kisco, N.Y.-based Kohlberg & Co. LLC, an equity firm. PPG said it received proceeds of about $270 million from the deal.

Charles E. Bunch, PPG's chairman and chief executive officer, said the transaction, which was announced in July, will help the company focus on coatings and specialty businesses.

PPG tried last year to sell the auto glass and services business to Beverly Hills, Calif.-based Platinum Equity. The deal fell through.

The automotive glass and services business supplies automotive windshields, windows, sunroofs and assemblies for car and truck manufacturers. It also supplies and distributes replacement automotive glass products for the aftermarket, and provides insurance claim services.

PPG said in July it will record one-time charges in the second quarter totaling about $25 million after tax for depreciation expenses that were suspended when the business was categorized as discontinued and for the impact of benefit changes.

PPG said it will use proceeds from the deal for general corporate purposes and will record a slight book gain when the deal is completed, likely in the third quarter.

PPG will hold a minority ownership interest of about 40 percent in Pittsburgh Glass Works.

Shares of PPG added 47 cents to $58.79 in early afternoon trading.