Platinum Equity to Terminate Agreement to Purchase PPG's Auto Glass Businesses
PPG Industries was notified that affiliates of Platinum Equity, Beverly
Hills, Calif., intend to terminate, after December 31, 2007, their
contract under which they agreed to purchase PPG's automotive original
equipment manufacture (OEM) glass and automotive replacement (ARG)
glass and services businesses. In addition, PPG confirmed that
Platinum's affiliates filed suit in the Supreme Court of the State of
New York, County of New York, alleging that the Platinum group is not
obligated to consummate the agreement. While PPG does not comment on
the specifics of litigation, the company stated that it intends to
vigorously enforce its rights under its agreements with the Platinum
group.
PPG also said that, in the event the transaction does not close with
the Platinum group, it will continue to explore divestiture,
restructuring and other strategic alternatives for the automotive OEM
and replacement glass and services businesses with the goal of
maximizing shareholder value.
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. It also provides
insurance claim services through its LYNX Services subsidiary, glass
management software through its GTS Services subsidiary, and e-business
solutions through its GLAXIS subsidiary.
The two automotive glass businesses manufacture and fabricate products
in nine North American plants located in Berea, Ky.; Creighton,
Meadville and Tipton, Pa.; Crestline, Ohio; Evansville, Ind.; Evart,
Mich.; and Hawkesbury and Oshawa, Ont., Canada. In addition, there are
nine satellite parts assembly plants, and there are LYNX Services
claims management centers in Fort Myers, Fla., and Paducah, Ky.
Combined, the businesses employ approximately 4,400 people.
Source: GlassOnWeb
