PPG Agrees to Sell Auto Glass Division to Kohlberg & Co. LLC for $270 Million
PPG Industries announced today that it has signed an agreement with an affiliate of funds managed by Kohlberg & Co. LLC in Mount Kisco, N.Y., under which PPG will divest its automotive glass and services business to a new company formed by Kohlberg.
PPG will receive $330 million in gross cash proceeds plus a minority ownership interest of approximately 40 percent in the new company, subject to closing adjustments. Net of payments to former minority interests, transaction fees, expenses and taxes, the transaction will result in approximately $270 million in cash to PPG.
Kohlberg & Co. L.L.C. is a private equity firm that acquires "middle market" companies (valued from $100 to $150 million), according to its website. The firm was founded in 1987 and has organized six private equity funds since that time.
"Kohlberg & Company invests in companies where it can work in partnership with senior management to identify growth opportunities and implement fundamental operating and strategic changes, resulting in substantial increases in revenue and cash flow," reads information from Kohlberg's site.
Representatives from Kohlberg could not be reached for comment at press time as to its plans for PPG's auto glass business and services unit. Representatives from PPG Industries had not responded to requests for comment at press time either.
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