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PPG deal shaky

Post Time:Dec 27,2007Classify:Industry NewsView:200

Officials at PPG Industries, Pittsburgh, announced Dec. 27 that affiliates of Platinum Equity, Beverly Hills, Calif., notified the company of their intent to terminate the contract under which they agreed to purchase PPG’s automotive OEM and ARG glass and services businesses. Platinum Equity claims PPG misrepresented the business’ financial health, according to a Dec. 28 Dow Jones Newswire report. The sale was to include nine North American manufacturing and fabrication facilities, nine satellite parts assembly plants, as well as claims management provider Lynx Services, with locations in Fort Myers, Fla., and Paducah, Ky. In total, the auto glass-related units employ about 4,400 people.PPG representatives confirmed in a release that Platinum’s affiliates filed suit in the Supreme Court of the State of New York, County of New York, alleging the Platinum group is not obligated to consummate the agreement. PPG officials declined to comment on the specifics of the litigation, but stated in the release that the company plans to “vigorously enforce its rights under its agreements with the Platinum group.” In the event the transaction with Platinum does not close, PPG will continue to explore divestiture, restructuring and other strategic alternatives for its automotive OEM and ARG and services businesses, according to the release.

Source: http://www.glassmagazine.com/news-item/auto/ppg-deal-shakyAuthor:

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