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PPG INDUSTRIES INC FILES (8-K) Disclosing Entry into a Material Definitive Agreement

July 3, 2014



Item 1.01. Entry into a Material Definitive Agreement.

On June 30, 2014, PPG Industries, Inc. (the "Company") entered into a definitive Stock Purchase Agreement (the "Purchase Agreement") for the acquisition of Consorcio Comex, S.A. de C.V. and its related companies (collectively, "Comex") in a cash transaction valued at $2.3 billion. Closing of the transaction is expected to occur in the fourth quarter of 2014, subject to receipt of antitrust regulatory approvals and customary closing conditions. The purchase price is subject to adjustment based on the level of working capital and net debt immediately prior to the closing.

The Purchase Agreement contains representations and warranties of the selling shareholders about the Comex business and various covenants regarding the conduct of the business during the period between signing and closing. Through the transaction, the Company will acquire ownership of Comex brands and other intellectual property. In addition, the selling shareholders have agreed not to compete with the business in areas where Comex is currently doing business, including Mexico and Central America, for a period of three years following the closing.

Under the terms of the Purchase Agreement, the Company has agreed to take commercially reasonable efforts to obtain approval from the relevant antitrust regulatory authorities on or before December 31, 2014 (the "End Date"). If regulatory review is ongoing as of the End Date, either the Company or Comex may elect to extend the End Date for up to 60 days in order for the Company to procure the required approvals.

The Purchase Agreement provides indemnification from the selling shareholders for the benefit of the Company for pre-closing tax and environmental liabilities as well as indemnification for breaches of the representations, warranties, covenants and agreements made by Comex and the selling shareholders in the Purchase Agreement, subject to agreed-upon baskets and caps and specified time limitations. The Company has agreed to provide indemnification for the benefit of the selling shareholders for breaches of the representations, warranties, covenants and agreements made by the Company in the Purchase Agreement.

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Source: Edgar Glimpses


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