PPG to Acquire Global Coatings Services Provider MetoKote
By Business Wire News
PPG (NYSE:PPG) announced today that it has reached a definitive agreement to acquire MetoKote Corporation and its affiliates. MetoKote is a U.S.-based coatings services business with 2015 global sales of approximately $200 million. The transaction is expected to close in the third quarter 2016, subject to customary closing conditions. Financial terms were not disclosed.
MetoKote is headquartered in Lima, Ohio, and has more than 1,500 employees. MetoKote applies coatings to customers’ manufactured parts and assembled products. It operates on-site coatings services within several customer manufacturing locations, as well as at regional service centers, located throughout the U.S., Canada, Mexico, the United Kingdom, Germany, Hungary and the Czech Republic. Customers ship parts to MetoKote service centers, where they are treated to enhance paint adhesion and painted with electrocoat, powder or liquid coatings technologies. Coated parts are then shipped to the customer’s next stage of assembly. MetoKote coats an average of more than 1.5 million parts per day.
“This acquisition will help us to better understand and meet our customers’ critical coatings requirements,” said Viktor Sekmakas, PPG executive vice president. “We are responding to customers’ requests to streamline the purchasing, delivery and application of coatings by adding MetoKote’s capabilities to PPG. This will simplify our customers’ operations, enabling them to focus on their core competencies of product design and manufacturing. Having a more intimate understanding of our customers’ coatings needs will help us to offer enhanced, end-to-end solutions and services going forward.”
Sekmakas added, “MetoKote is a leader in coatings services. Its size, breadth of capabilities and geographic reach complement PPG’s technology and regional customer base. With this acquisition, we will be able to deliver process efficiency and streamline coatings operations for our customers, helping to drive a new era of innovation.”
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At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 130 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.3 billion in 2015. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.
Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to the timing of and expected benefits of the MetoKote Corporation acquisition. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including the satisfaction of the conditions of the acquisition and other risks related to completion of the acquisition and actions related thereto; the parties’ ability to complete the acquisition on the anticipated terms and schedule, including the ability to obtain regulatory approvals; the ability of PPG to achieve the expected benefits of the acquisition; and the other risks and uncertainties discussed in PPG’s periodic reports on Form 10-K and Form 10-Q and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
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