24 June 1999: US-based PPG Industries has announced that it intends to acquire coatings and sealings maker PRC-DeSoto International, Inc., (formerly Courtaulds Aerospace, Inc.) of Glendale, California…
24 June 1999: US-based PPG Industries has announced that it intends to acquire coatings and sealings maker PRC-DeSoto International, Inc., (formerly Courtaulds Aerospace, Inc.) of Glendale, California from Akzo Nobel N.V. for US$ 512.5 million. Pending regulatory approval, the transaction is expected to be completed by the end of July. PRC-De Soto is a global supplier of coatings and sealants for aircraft and sealants for architectural insulating glass units. It has manufacturing operations in the United States and Europe, as well as application support centres around the world serving aircraft manufacturers and commercial operators. PRC-De Soto employs about 1,200 people. Annual sales are approximately US$ 240 million. PPG board chairman and chief executive, Raymond LeBoeuf, maintained “This acquisition furthers our strategy to invest in core businesses with excellent growth potential and consistent earnings”. He added “We expect it to make a positive earnings contribution within our first year of ownership”. According to a press release, Mr. Le Boeuf believes that the acquisition will make PPG a leading supplier of coatings and sealants to the world“s commercial, general and military airframe producers and operators and will enhance its capabilities in glass sealants as well as coatings application systems. Mr. Le Boeuf expects that PPG“s technologies will reinforce and expand PRC- De Soto“s well respected product line with water-borne and clear coatings, surface pretreatment products and chemicals management. He further commented “Our automotive sealants business should also benefit through cross-overs in product applications, and there are obvious marketing, distribution and certification-process synergies with our aircraft windshields and windows”.