What Happened? Platinum May Not Buy PPG Auto After All

Never mind.

While the news that Platinum Equity had changed its mind about moving forward on the purchase of PPG Auto Glass was stunning to some, it came as no surprise to others with knowledge of the ongoing negotiations to close the deal.

According to sources with knowledge of the negotiations, things had taken a sour turn nearly two months ago. "There was a major difference in philosophy," said one source familiar with the deal who requested anonymity in order to discuss the situation freely. "PPG felt that the offer made should be honored as a firm offer. Platinum used that number as a starting point from which to deal. Platinum expected major concessions that PPG just wasn't willing to make. It became a game of chicken that PPG wasn't playing."

Indeed some are even wondering if Platinum's announcement isn't yet a part of the game, or if perhaps it will inspire both sides to try harder to make a deal happen. Others are not so sure. "Selling a business of that size is immensely difficult," said one large glass company owner who preferred not to be named. "There needs to be a lot of cooperation that is almost impossible to gain in an adversarial relationship."

The news also left many longtime PPG Auto Glass employees concerned. "We were told that we would be working for a great new company by January 1," said one. "Obviously that won't be the case."

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