Equity to Terminate Agreement to Purchase PPG's Auto Glass Businesses
Pittsburgh-based PPG Industries has been notified that affiliates
of Platinum Equity in Beverly Hills, Calif., intend to terminate
their contract under which they agreed to purchase PPG's automotive
original equipment manufacture (OEM) glass and automotive replacement
(ARG) glass and services businesses. The companies had signed an
agreement regarding the divestiture in early September with a purchase
price of approximately $500 million before minority interest. (CLICK
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In addition, PPG has announced that Platinum's affiliates filed
suit in the Supreme Court of the State of New York, County of New
York, alleging that Platinum is not obligated to consummate the
agreement. While PPG does not comment on the specifics of litigation,
the company says that it intends to enforce its rights vigorously
under its agreements with Platinum.
PPG also says that, in the event the transaction does not close
with Platinum, it will continue to explore divestiture, restructuring
and other strategic alternatives for the automotive OEM and ARG
and services businesses with the goal of maximizing shareholder
According to the New York Stock Exchange, PPG shares currently
are valued at $69.86, a 2-percent drop from yesterday's close at
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