Industry Plays "Waiting Game" with PPG Auto Glass Sale
While many industry representatives have remained silent on what the sale of PPG Industries' auto glass unit to the private equity firm Kohlberg & Co. LLC, means to the industry, one shop owner believes most are simply "playing the waiting game" until the sale is complete and the future of the business unfolds.
"I, like most others, am playing the waiting game," says Karl Anderson of Anderson's Auto Glass in Williston, Vt. "It seems to me that Kohlberg is not the type of group to hold onto this type of business for very long."
Of course, pricing is the issue that brings the most angst from many.
"My real concern is what happens with the price of PPG auto glass, especially when the discounts off NAGS list prices continue to escalate," says Mike Russo, controller of Thru-Way Auto Glass in Syracuse, N.Y.
Russo also expressed concern about where the third-party administrator arm of the company will end up if Kohlberg does in fact sell the various sectors off in parts, as many have suggested they might. (Editor's Note: Representatives at Kohlberg have not responded to numerous requests for comment by glassBYTEs.com/AGRR magazine.)
"Regarding the entire company, I have real concerns [about] where LYNX ultimately [will] end up," Russo adds.
Despite these concerns, one industry representative who wished to remain anonymous thinks the PPG auto glass sale is a small part of a much larger puzzle.
"I think there are much larger issues facing the auto glass industry than the sale of PPG auto glass," he says. "Many of those issues may be at the heart of the PPG sale, or the reason PPG is getting out of the auto glass business for the time being."
CLICK HERE for related story about what PPG employees at the company's plant in Creighton, Pa., think about the sale.
CLICK HERE for related story about what "Mad Money's" Jim Cramer thinks about the future of PPG Industries.
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