Issue Date: July 23, 2012
Georgia Gulf Will Merge With PPG Chemicals Unit
Georgia Gulf will combine with PPG Industries’ commodity chemicals business in a transaction valued at $2.1 billion. The merged company will have annual sales of about $5 billion—two-thirds from Georgia Gulf and the rest from PPG—and will be the third-largest North American producer of chlor-alkali after Dow Chemical and Occidental Chemical. The companies anticipate annual cost savings of about $115 million. Under the transaction, PPG will spin off its commodity chemicals business and then immediately merge it with Georgia Gulf, receiving $1.1 billion in cash and assumed debt and $1.0 billion in Georgia Gulf shares. PPG shareholders will own about 50.5% of the resulting company. PPG CEO Charles E. Bunch says the deal continues PPG’s transformation into a more focused coatings and specialty products company. Georgia Gulf CEO Paul Carrico says it provides more low-cost chlorine raw material for his firm’s polyvinyl chloride business. Georgia Gulf recently fended off a takeover bid from Westlake Chemical that would have created a large polyvinyl chloride company.
- Chemical & Engineering News
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