-11 October 2007 -
PPG Industries to Acquire Dutch Coatings Producer

PPG Industries, Inc. has agreed to purchase SigmaKalon Group, a Dutch paint and coatings producer, from Boston-based Bain Capital, a private equity firm. According to PPG, the deal will help the company expand operations in Europe and Asia. Individuals familiar with the deal put its value at about $3.1 billion (€2.2 billion), including assumed debt.

Analysts say the acquisition will more than double PPG's sales in Europe, where SigmaKalon is estimated to be the second-largest coatings company. SigmaKalon supplies architectural, protective, marine and industrial coatings mostly in Europe, Africa and Asia. Industry observers say it has grown significantly in Eastern Europe, especially in Poland, and recently bought an architectural coatings firm in China. The Netherlands-based SigmaKalon had 2006 revenue of about $2.76 billion, according to PPG. Its brands include Sigma Coatings, Johnstone's, Leyland, Primalex and Seigneurie, among others. PPG had revenues of $11 billion last year.