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Platinum 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 HERE for related story.)

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 value.

According to the New York Stock Exchange, PPG shares currently are valued at $69.86, a 2-percent drop from yesterday's close at $71.86. (CLICK HERE for more information.)

Stay tuned to glassBYTEs.comô for updates and reaction to this announcement.

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