PPG Industries (NYSE: PPG) today announced that it has completed the previously announced acquisition of certain assets of Equa-Chlor, Inc., a producer of chlorine, caustic soda and muriatic acid, based in Longview, Wash. The transaction value was approximately $27 million. “We are pleased with the successful closing of this acquisition,” said Michael H. McGarry, PPG senior vice president, Commodity Chemicals. “We have begun to integrate the Longview location into PPG’s chlor-alkali and derivatives business to better serve customers throughout the country. We are committed to maintaining excellent performance by supplying customers with quality products and services, as well as operating a safe workplace as we complete the integration process.” As of the closing, PPG acquired and now operates the Longview manufacturing plant, with 65 employees, which produces about 220 tons of chlorine per day. In addition, the railcar fleet formerly owned by Equa-Chlor will be integrated into PPG’s rail delivery system, enabling PPG to optimize overall railcar use while reducing future capital requirements and logistics costs. McGarry also said that the timing of the acquisition is favorable, and it is expected to be accretive to PPG’s earnings within a year, given current industry dynamics. “Additionally, we anticipate that current supply disruptions in Asia will have a favorable impact on the overall economics of this transaction,” he said. PPG currently manufactures chlor-alkali and derivates products in Lake Charles, La.; Natrium, W.Va.; Beauharnois, Quebec, Canada; Longview, Wash.; and through a majority-owned subsidiary in Kaohsiung, Taiwan. These products are essential to everyday life and are used in many end-use markets, such as purifying drinking water and making bleach, paper and pharmaceuticals. About PPG PPG Industries’ vision is to continue to be the world’s leading coatings and specialty products company. Founded in 1883, the company serves customers in industrial, transportation, consumer products, and construction markets and aftermarkets. With headquarters in Pittsburgh, PPG operates in more than 60 countries around the globe. Sales in 2010 were $13.4 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com. Forward-Looking Statements Statements in this news release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 reflecting the company’s current view with respect to future events or objectives and financial or operational performance or results. The forward-looking statements contained herein include statements relating to the timing and expected benefits of the acquisition. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including the failure to achieve the expected benefits of the acquisition and the other risks and uncertainties discussed in PPG Industries’ periodic reports on Form 10-K and Form 10-Q, and its current reports on Form 8-K filed with the Securities and Exchange Commission. Forward-looking statements speak only as of the date of their initial issuance, and PPG Industries does not undertake any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.
Jefferies analysts note that recent construction spending data indicates a cycle rotation away from construction-exposed names and toward industrial- and durable goods-levered firms could be playing out.