PPG to acquire Colombia coatings business
PPG Industries has agreed to purchase the coatings businesses of Colpisa Colombiana de Pinturas, a privately-owned Colombian coatings company, and its affiliates, including Colpisa Ecuador.
The transaction is expected to close no later than the end of the first quarter 2012, subject to regulatory approvals and customary closing conditions, the company said.
Financial terms were not disclosed.
Colpisa, based in Itagüi, near Medellin, was founded in 1973 and manufactures and distributes coatings for automotive OEM and refinish, industrial and architectural coatings customers in Colombia and Ecuador.
Colpisa operates a coatings manufacturing facility in Colombia and employs about 400 people.
The company has been a technology licensee of PPG automotive OEM coatings since 1996 and a distributor of PPG automotive refinish products since 2004.
“By acquiring Colpisa, PPG builds on a successful relationship and gains the opportunity to expand our coatings presence in Colombia to directly serve and grow with automotive manufacturers,” said Tim Knavish, PPG’s vice president of automotive OEM coatings, Americas.
“PPG intends to build upon Colpisa’s strong manufacturing and distribution practices as the Colombian economy expands and more automobiles are built and sold in the region,” he added.
According to Knavish, PPG would become the only major global coatings supplier with a direct automotive OEM manufacturing presence in Colombia.
PPG currently has no manufacturing sites in Colombia or Ecuador, but does supply protective and marine coatings to the region, in addition to its technology and distribution relationship with Colpisa.
“As an automotive refinish coatings leader, we are pleased to add Colpisa’s automotive refinish business to our global portfolio,” said John Outcalt, PPG’s vice president of global automotive refinish. “This acquisition is further evidence of PPG’s commitment to grow our coatings presence in Latin America.”
According to Outcalt, by acquiring Colpisa, PPG will become one of the leading providers of a full line of automotive refinish products in Colombia with the ability to grow and serve local customers through an established distribution network.
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