Bain Capital completed its sale of Dutch coatings company SigmaKalon Group to PPG Industries (NYSE: PPG) for approximately EUR 2.2 billion, including assumed debt. SigmaKalon was created in 1999 from the merger of Total's Kalon Group and PetroFina's Sigma Coatings, and was acquired by Bain in 2003. Sales have increased from approximately EUR 1.7 billion in 2003 to approximately EUR 2 billion in 2006.
PPG Industries Inc. completed its $3.2 billion acquisition of SigmaKalon Group of the Netherlands, the Pittsburgh-based paint and coatings manufacturer said Wednesday.
“This acquisition is strongly aligned with our vision and core strategies,” PPG chairman and chief executive officer Charles E. Bunch said in a statement. “With SigmaKalon we are accelerating our transformation to focus on coatings and specialty products.”
PPG announced its bid for SigmaKalon in July.
The deal was approved by European Union antitrust regulators last month. It will more than double PPG's sales in Europe, where SigmaKalon is the second-largest coatings company, but EU regulators found no antitrust problems because the market shares of the companies are not significant and each business has a different product and geographic focus.
SigmaKalon makes architectural, protective, marine and industrial coatings and has 22 manufacturing plants in Europe and elsewhere. The company sells directly to professional painters through service centers, about 500 company-owned stores and 3,000 independent wholesalers.
PPG also announced that former SigmaKalon CEO Pierre-Marie De Leener will be a senior vice president. He will head a new strategic business unit , architectural coatings for Europe, the Middle East and Africa , and will report to Bunch.
PPG purchased SigmaKalon from Boston-based Bain Capital, which acquired SigmaKalon four years ago.
SigmaKalon, based in Uithoorn, Netherlands, had 2006 revenue of about $2.76 billion, according to PPG. Its brands include Sigma Coatings, Johnstone's, Leyland, Primalex and Seigneurie, among others.
SigmaKalon was formed in 1999 through a merger of Britain-based decorative paint maker Kalon Group, a subsidiary of Total SA, and Sigma Coatings, owned by Belgian oil company Petrofina.
PPG shares were trading for $69.12 at Wednesday, down $1.11. It employs more than 34,000 people in 25 countries.