Georgia Gulf to buy PPG Industries' commodity chemicals business for $2.1 bn
19 Jul 2012
Georgia Gulf Corp today struck a $2.1-billion deal to buy PPG Industries Inc's commodity chemicals business, just months after rejecting a takeover offer from Westlake Chemical Corp.
PPG will spin off or split the unit into a separate business and then merge with Georgia Gulf. PPG shareholders will receive 50.5 per cent of the new company's shares, while Georgia Gulf shareholders will get the remaining 49.5 per cent.
Under the deal that includes debt, PPG shareholders get $1 billion worth of Georgia Gulf stock, while PPG will receive $900 million in cash and Georgia Gulf will assume PPG's debt of around $95 million.
Georgia Gulf will also spend $87 million to acquire a minority stake in PPG.
The proposed deal comes after Georgia Gulf fought off a $1.9 billion hostile takeover from arch rival Westlake Chemical in May this year.
Post closing, which is expected in late 2012 or early 2013, the combined company is expected to have annual revenues of approximately $5 billion and be the third-largest chlor-alkali producer and second-largest vinyl chloride monomer producer in North America.
The merged company will have approximately 6,400 employees and more than 40 facilities, primarily in North America.