2.3 Billion Dollar Takeover in Coatings PPG Pays 2.3 Billion Dollars for Mexican Coatings Firm Comex
PPG industries offers US $ 2.3 billion for Comex, a Mexico based producer of coatings. This acquisition could give the American industry group a stronger foothold in South and Central America as well as in Spain, industry insiders say.
Mexico D.F./Mexico – Comex manufactures coatings and related products in Mexico and sells them through approximately 3,600 stores that are independently owned and operated by more than 700 concessionaires. The company has approximately 3,900 employees, eight manufacturing facilities and six distribution centers, and had sales of around US $ 1 billion in 2013.
PPG is already the second bidder to be interested in Comex: Since 2012, Sherwin–Williams had been trying to buy the Mexican firm for a similar sum, but cancelled its plans in 2014 due to difficulties with the local competition commission.
Takeover “Adds Business in Mexico and Central America”
“Comex is a high-quality, well-managed business with a long heritage of excellent customer service and leading, well-recognized regional brands,” said Charles E. Bunch, PPG chairman and CEO. “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.”
Bunch said, that PPG plans to fund the acquisition primarily using currently held cash and short-term investments, but he indicated that 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 be immediately accretive to earnings, and that the Company anticipates acquisition-related synergies of 3 to 4 percent of acquired sales will be achieved over a two-year period.