Pittsburgh, PA-based PPG, the coatings, chemicals, and glass maker, is to sell its automotive original equipment manufacture (OEM) glass and automotive replacement glass (ARG) and services businesses to an affiliate of Platinum Equity of Beverly Hills, California for $500m.
“This transaction will significantly reduce PPG’s exposure to the US automotive market,’ said Charles E. Bunch, PPG chairman and chief executive officer. ‘It will also provide us with more resources to pursue profitable growth in coatings, aerospace, optical products and opportunities in Asia.’
The automotive OEM glass business unit supplies windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers. The ARG and services business unit supplies and distributes replacement automotive glass products for use in the aftermarket. The company also provides insurance claim services through its Lynx services subsidiary, glass management software through its GTS subsidiary, and e-business solutions through its Glaxis subsidiary.
The automotive glass businesses manufacture and fabricate automotive glass products in nine North American plants. In addition, there are nine satellite parts assembly plants, and two Lynx Services claims management centres. Combined, the businesses employ approximately 4,400 people.
Completion of the transaction is expected in the fourth quarter and is subject to customary closing conditions, including receipt of required regulatory approvals.