PPG reaches agreement to acquire Barloworld Coatings Australia.
PPG Industries Australia Pty. Ltd., a subsidiary of PPG Industries, has reached an agreement to acquire Barloworld Coatings Australia, the architectural paint unit of South African-based Barloworld, Ltd., a multinational industrial brand management company. Completion of the acquisition is subject to customary closing conditions, including receipt of required regulatory approvals. Terms were not disclosed.
Barloworld Coatings Australia, a leading Australian architectural and decorative paint manufacturer, produces Taubmans, Bristol and White Knight brands of architectural coatings. The company operates two production facilities in Villawood, New South Wales, and Glen Waverley, Victoria. Barloworld Coatings Australia distributes products through 85 company-owned stores, a network of sole-brand distributors and numerous independent dealers. In addition, the company's paints are sold through Bunnings, Australia's largest home-improvement retailer, and exported to New Zealand. The business employs approximately 750 people.
Barloworld's plant in Glen Waverley will not be acquired by PPG, but will continue to manufacture Barloworld brand products for PPG until production and distribution activities are transferred to other locations.
PPG Industries Australia Pty. Ltd. is a market leader in automotive, industrial, protective and marine coatings. The subsidiary has manufacturing plants in Clayton, Victoria, and Adelaide, South Australia, and employs more than 800 people in Australia. The purchase of Barloworld Coatings Australia will make PPG the largest coatings manufacturer in Australia.
"We are continuing to accelerate our profitable growth in coatings by making strategic acquisitions," said J. Rich Alexander, senior vice president, coatings. "The Barloworld coatings brands are well-respected in Australia. By acquiring Barloworld's Australian coatings business, we'll be well-positioned to be the leading coatings manufacturer operating in all market segments and channels in Australia."
Greg DeCamp, managing director, Australia and New Zealand, said, "The acquisition of Barloworld Coatings Australia will complement our existing businesses and enable PPG to enter the wider architectural coatings market. We'll be able to bring our global technology, long-term commitment and stability to the Australian coatings market."
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|Title Annotation:||As We Go To Press|
|Date:||Aug 1, 2007|
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