Pittsburgh company buys AkzoNobel

PPG aquires Huron plant
Tom Jackson
Dec 16, 2012

 

 

The AkzoNobel paint plant in Huron will be coming under new ownership soon.

PPG Industries of Pittsburgh announced Friday that it will acquire AkzoNobel's North American paints business for $1.05 billion.

The sale of Decorative Paints North America includes the AkzoNobel paint plant in Huron, which employs about 200 people. The paint business produces a number of paint brands, including Glidden.

The boards of directors of both companies have approved the sale, PPG said in a news release announcing the acquisition. If regulators approve, the deal is expected to close early in the second quarter of 2013.

"This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses," said Charles E. Bunch, PPG chairman and CEO. "It is also an attractive way to significantly increase our scale in the North American architectural paint market, which we anticipate will benefit from a prolonged construction market recovery."

The sale includes about 600 AkzoNobel-owned paint stores.

AkzoNobel's paint brands include Glidden, Flood, Liquid Nails, Sico, and Cil. In addition, PPG will license Dulux paints, Devoe architectural coatings and Sikkens architectural wood products.

In 2011, AkzoNobel's North American paint business had revenues of $1.5 billion, about 7 percent of AkzoNobel's total 2011 revenue, AkzoNobel said in a news release.

"Over the past four years the team has done a great job in turning the North American Decorative Paints business around," said Tom Buechner, CEO of AkzoNobel. "We are convinced that Decorative Paints can get better returns from our leading positions in Europe and high growth markets. I am pleased that we have found a respected company to take over the business. The agreement is  good outcome for all stakeholders."

PPG employs more than 38,000 people around the world, according to a company fact sheet. It is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass, the company says.

Comments

badboy

I guess that's one company Sherwin Williams won't be gobbling up.

old dog

Hopefully PPG will eliminate some of the temp and parttime and will onsider more fulltime positions. The temp and parttime folks will never have any benefits or any retirement down the road.

Really

The plant just hired several new full time employees. The full time employees are chosen from the part time work force. If those PT employees would work hard, they would also be hired full time. PLUS...tell me what person can go to a job working PT and make $15/hour. Most people make half those wages and have to put in twice the amount of work. It's a great company that employees over 400 people in our area. Most jobs average $22-$26 per hour, don't try to bring it down with your negative feedback.

Also, most part time positions at any company will not offer benefits. PT employees do have the option of choosing the insurance at Akzo Nobel.

looking around

In this sale transition who will represent the hourly employees in negotiation to maintain current wage and benefit structures or perhaps to make improvements? Do they currently have union representation? Are other PPG concerns union?

Informed

looking around, to my knowledge, this place is currently a non-union shop. Really, I know a lot of part time waitresses/waiters who make $15 an hour or more. And yes, most full time jobs there pay decently, but their insurance out-of-pocket costs are ridiculous, not to mention the goofy shift times (if you want to call them shifts) some people have to work. Keep drinking the company Kool-Aid.

Contango

Non-union shop. PT voted it down last time.

Akzo was a bad fit. PPG may be better. (Fingers crossed)