In a press release announcement Monday, PPG Industries (NYSE: PPG) reached an agreement to acquire Consorcio Comex, S.A. de C.V. ("Comex").
The deal is valued at $2.3 billion, with no details of deal structure released yet. Comex and PPG are both in the coating manufacturing space.
CEO and Chairman of PPG Industries, Charles E. Bunch, claims the acquisition meets the company's goal of expanding its exposure in coating. Bunch added. "Following this transaction, we will continue to have a strong cash balance, expanded free cash flow and a high degree of financial flexibility, and we expect additional, disciplined cash deployment focused on value creation for our shareholders."
PPG reported $3 billion of cash and short-term investments on its balance sheet as of March 31, 2014. On April 17, 2014, PPG's announced share repurchases of $2 billion and increased its quarterly dividend payable in June 12, 2014, by 10 percent compared the previous quarterly dividend.
Comex CEO Marcos Achar Levy, discussed the opportunities for his company joining PPG Industries and talks of synergies for both companies benefiting from projected growth in the future.
Anticipated acquisition synergies of three to four percent of acquired sales will be achieved over a two-year period.
Original headline: PPG Industries To Acquire Comex For $2.3 Billion
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