PPG to use $900m cash from Georgia Gulf deal for acquisitions

19 July 2012 16:33  [Source: ICIS news]

HOUSTON (ICIS)--PPG Industries plans to use the $900m (€738m) in cash it will get as part of the merger of its commodity chemicals business with Georgia Gulf for coatings and related acquisitions, the CEO of the US-based producer said on Thursday.

The companies announced the planned $2.1bn stock-and-cash merger deal earlier on Thursday.

“We continue to look at opportunities in the coatings space, we think there will be more of those opportunities as you see changes in growth rates or economic conditions around the world,” Charles Bunch told analysts during a conference call.

“We are confident that there will be good [acquisition] opportunities in coatings, or in related specialty chemicals and materials areas,” Bunch added.

Furthermore, PPG may use part of the cash for debt repayments, share repurchases or dividends, he said.

The separation of the commodity chemicals business will continue PPG’s transformation into a more focused coatings and specialty materials company, Bunch said.

($1 = €0.82)

By: Stefan Baumgarten
+1 713 525 2653

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