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PPG Industries, Inc.(NYSE:PPG) Shares Up on Deal to Buy Consorcio Comex

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By on Energy & Solar

Protective-and-decorating coatings supplier PPG Industries, Inc.(NYSE:PPG) said it agreed to acquire Consorcio Comex, a privately held architectural-and-industrial coatings manufacturer headquartered in Mexico City, Mexico, for $2.3 billion. 

PPG was up 4.8% at $213.75 in recent pre-market trading, in a 52-week range of $144.58 to $205.92. 

“The acquisition is very complementary to PPG as it adds a leading architectural coatings business in Mexico and Central America, a region where we have negligible architectural coatings presence,” said PPG Chairman and CEO Charles E. Bunch. 

Comex has approximately 3,900 employees, eight manufacturing facilities and six distribution centers, and had sales of approximately $1 billion in 2013. 

Bunch said PPG plans to fund the acquisition primarily using currently held cash and short-term investments, but he indicated the company may fund a portion of the purchase price through the addition of debt. Bunch added that excluding non-recurring acquisition-related costs, the deal will immediately boost its earnings. The company also anticipates acquisition-related synergies of 3% to 4% of acquired sales over a two-year period. 

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