PPG Industries announced on Monday it had entered into an agreement to purchase Consorcio Comex S.A. de C.V. or Comex, an industrial coatings and architectural company that has its headquarters in Mexico City.
The transaction has been valued at just over $2.3 million and will need regulatory approvals.
Comex is a manufacturer of coatings and other related types products in the country of Mexico with sales in Mexico as well as across Central America. Comex products are in over 3,500 stores that are owned independently and run by over 700 concessionaires.
Comex also offers its different products through wholesalers, retailers and direct sales. Comex has 3,900 employees, eight facilities for manufacturing and 6 centers for distribution.
Sales in 2013 were $1 billion. Comex is privately held and founded back in 1952.
The CEO and chairman of PPF Charles Bunch said Comex was a high quality and well-managed business with great customer service as well as leading regional well-recognized brands.
Bunch concluded by saying that the acquisition by PPG of Comex complementary to the company adding a leading coatings company in Mexico and all of Central America, which is an area where the company has little or no coatings presence.
Marcos Achar Levy the Comex CEO said in the times today of globalization and very competitive markets the making of strategic alliance allow development of companies and those who work for them.
Levy said the company was excited to be a part of the PPF team that is a company with more than 130 years in the field.
Bunch said that PPG is planning to fund this acquisition with primarily using cash and short-term investments. However, he did say the company might fund part of the acquisition prices by adding debt.
PPG reported it had $3 billion in cash as well as short-term investments as of the end of March 2014. A share repurchase program was authorized by the board for $2 billion as well as an increase in the quarterly dividend that is payable on July 12, 2014 by 10% over the previously quarterly dividend.
Get Analysts' Upgrades and Downgrades Daily - Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.