Happened? Platinum May Not Buy PPG Auto After All
While the news that Platinum Equity had changed its mind about
moving forward on the purchase of PPG Auto Glass was stunning to
some, it came as no surprise to others with knowledge of the ongoing
negotiations to close the deal.
According to sources with knowledge of the negotiations, things
had taken a sour turn nearly two months ago. "There was a major
difference in philosophy," said one source familiar with the deal
who requested anonymity in order to discuss the situation freely.
"PPG felt that the offer made should be honored as a firm offer.
Platinum used that number as a starting point from which to deal.
Platinum expected major concessions that PPG just wasn't willing
to make. It became a game of chicken that PPG wasn't playing."
Indeed some are even wondering if Platinum's announcement isn't
yet a part of the game, or if perhaps it will inspire both sides
to try harder to make a deal happen. Others are not so sure. "Selling
a business of that size is immensely difficult," said one large
glass company owner who preferred not to be named. "There needs
to be a lot of cooperation that is almost impossible to gain in
an adversarial relationship."
The news also left many longtime PPG Auto Glass employees concerned.
"We were told that we would be working for a great new company by
January 1," said one. "Obviously that won't be the case."
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