PPG Buys a Business, Can't Sell Another

PPG Industries has completed the $3.2 billion purchase of Dutch paint maker SigmaKalon Group from private equity firm Bain Capital. According to PPG CEO Charles E. Bunch, the acquisition "sharply increases the proportion of sales coming from architectural or decorative coatings." However, PPG has run into a problem selling its automotive glass business. Proceeds from the planned $500 million sale to Platinum Equity Group were to have helped pay for SigmaKalon. The private investment firm claims the business is in worse financial shape than PPG had indicated but says it is willing to renegotiate the purchase price. The two have taken their dispute to court. PPG says it will explore "other strategic alternatives" for the glass business if it doesn't close the deal with Platinum.