PPG Industries receives approval for major acquisition
PPG Industries will sharply expand its worldwide offerings when it acquires SigmaKalon Group, a Netherlands-based producer of architectural, decorative and protective coatings, as well as coatings for the marine and industrial markets.
The total transaction value, including assumed debt, is approximately 2.2 billion Euros (US$3.22 billion). PPG said it anticipates the acquisition will close within the next 45 days. The deal was approved this week by European Union regulators.
PPG employs more than 34,000 people worldwide with manufacturing facilities and other operations in 25 countries. SigmaKalon employs approximately 10,000 people and sells coatings in more than 40 countries worldwide.
SigmaKalon Group is owned by Bain Capital Partners, a private investment firm with interests in a number of home improvement companies. Bain Capital, along with Carlyle Group and Clayton, Dubilier & Rice, this fall purchased Home Depot’s HD Supply unit for $8.5 billion -- the LBM unit of HD Supply has since been sold to Pro-Build. In October, Bain Capital also purchased the kitchen and bath assets of American Standard for $1.76 billion.
SigmaKalon makes decorative coatings under several international brands, including Avi, Eureka and Prominent Paints. SigmaKalon products are sold throughout Eastern and Western Europe, Africa and Asia. PPG brands include Pittsburgh Paints, Olympic, Monarch, Porter Paints and Manor Hill.