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PPG Industries has announced that it has reached a definitive agreement to acquire Consorcio Comex, SA de CV (Comex), an architectural and industrial coatings company with headquarters in Mexico City, Mexico. The transaction is valued at US$2.3bn and is subject to regulatory approvals and customary closing conditions. Comex manufactures coatings and related products in Mexico and sells them in Mexico and Central America through approximately 3600 stores that are independently owned and operated by more than 700 concessionaires. Comex also sells its products through regional retailers, wholesalers and direct sales to customers.
Founded in 1952, the company has approximately 3900 employees, eight manufacturing facilities and six distribution centres and had sales of approximately US$1bn in 2013.
"The acquisition is very complementary to PPG as it adds a leading architectural coatings business in Mexico and Central America, a region where we have negligible architectural coatings presence,” said Charles E Bunch, PPG chairman and CEO.
Bunch added that PPG plans to fund the acquisition primarily using currently held cash and short-term investments but he indicated that the company may fund a portion of the purchase price through the addition of debt.
