PPG Industries Australia Pty Ltd, a subsidiary of Australian coatings maker PPG Industries, has agreed to acquire Barloworld Coatings Australia, the architectural paint unit of the South Africa-based Barloworld Ltd, a multinational industrial brand management company. The acquisition will be completed after the required regulatory approvals. The terms of the buyout were not disclosed.

Barloworld Coatings Australia is a leading maker of architectural and decorative paints, and makes the Taubmans, Bristol and White Knight brands of architectural coatings. Its production facilities are at Villawood, New South Wales, and Glen Waverley, Victoria. The Glen Waverley plant will not be acquired, but will continue to manufacture Barloworld brand products for PPG until production and distribution activities are transferred to other locations.

The company also has 85 company-owned stores, apart from a network of sole-brand distributors and dealers. Barloworld paints are also sold through Bunnings, Australia''s largest home-improvement chain of stores, apart from being exported to New Zealand. The business employs around 750 people.

PPG Industries Australia is a market leader in automotive, industrial, protective and marine coatings. The subsidiary has plants in Clayton, Victoria, and Adelaide, South Australia, and employs more than 800 people in Australia. After the Barloworld acquisition, PPG becomes the largest coatings manufacturer in Australia.

"We are continuing to accelerate our profitable growth in coatings by making strategic acquisitions," said J Rich Alexander, senior vice president, coatings, for PPG. Greg DeCamp, managing director, Australia and New Zealand, said, "The acquisition of Barloworld Australia will enable PPG to enter the wider architectural coatings market."

Last year, PPG acquired Protec Pty Ltd, Adelaide, a manufacturer and distributor of automotive refinish coatings and light industrial and high-performance coatings. Later in 2006, PPG acquired the performance coatings and finishes business of Ameron International Corporation, Pasadena, California, which also had operations in Australia and New Zealand.

Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fibreglass. The company employs more than 34,000 people and has 125 manufacturing facilities and equity affiliates in more than 25 countries. Sales in 2006 were $11 billion. PPG shares are traded on the New York and Philadelphia stock exchanges.