MOSCOW (MRC) -- PPG Industries has announced that it has submitted an offer to acquire a majority interest in the aerospace and automotive sealants businesses of Le Joint Francais (LJF), according to StreetInsider.
LJF is a supplier of sealants and adhesives products for the aerospace and automotive industries and has been a long-term licensee of PPG’s aerospace sealant technology.
LJF’s aerospace and automotive sealants businesses would be spun-off to form a new, separate entity, of which PPG would be the majority owner.
PPG anticipates closing the transaction in the second half of 2015, following completion of the French works council consultation process, receipt of regulatory approvals and satisfaction of other customary closing conditions. Financial terms were not disclosed.
This venture is a natural progression for the two companies, as LJF has been a licensee of PPG technology for more than 60 years. This would allow us to serve our aerospace and automotive customers with greater geographic reach and with a wider array of automotive products," said Michael McGarry, PPG chief operating officer.
As MRC wrote previously, in 2013 PPG Industries announced the successful closing of the previously announced separation of its commodity chemicals business and merger of its wholly-owned subsidiary, Eagle Spinco Inc., with a subsidiary of Georgia Gulf Corporation. Initially, Georgia Gulf and PPG Industries announced the merger between commodity chemicals business in July, 2012. The combined company was named Axiall Corporation.
LJF is headquartered in France and is part of the Hutchinson Group, a world leader in sealing systems, vibration, acoustic and thermal insulation, fluid transfer systems, transmission and mobility. LJF’s aerospace and automotive sealants businesses employ more than 200 people, and the new entity would continue operations in Bezons, France, at the facility where these businesses are currently based.
PPG Industries Inc. is an Americain international company that produces paints, chemicals, optical components, specialty materials, glass and fiber glass. The company consists of more than 150 production units and offices in more than 60 countries. PPG industries is in the list of the top 500 U.S. corporations in terms of sales of. As MRC reported previously, PPG Industries plans to open its first factory in Russia near Tver. As of today, PPG Industries has no production facilities in Russia.
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