PPG Commodity Chemicals and Georgia Gulf reveal merger intentions
Georgia Gulf and PPG Commodity Chemicals have announced that they plan to merge.
Merger and acquisition consultants could be needed by PPG's Commodity Chemicals business to support it in its tie-up with Georgia Gulf.
PPG expects this transaction to result in a global building products and chemicals company producing revenues of an estimated $5 billion (£3.19 billion) annually.
The deal will be tax-efficient and has been valued at $2.1 billion, with it complementing both companies' strategic objectives.
Shareholders in Georgia Gulf and PPG are likely to see enhanced value as a result of the combination, which could realise cost synergies of $115 million within two years.
A joint presentation on the proposed merger was held by both enterprises today (July 19th) at 08:30 ET.
"We are pleased to have reached this agreement as this transaction is another major step in our strategic transformation into a more focused coatings and specialty products company," chief executive officer and chairman of PPG Charles Bunch said.
The merger is expected to be finalised towards the end of 2012 or the beginning of 2013.
Posted by Edel Quinn
Source: Joint press release, July 19th