Georgia Gulf to buy PPG’s commodity chemicals business for $2.1 billion
PITTSBURGH and ATLANTA — Georgia Gulf Corp. announced today that it has reached an agreement to acquire PPG Industries Inc.’s commodity chemicals business for $2.1 billion.
The terms of the transaction call for PPG to form a new company by separating its commodity chemicals business through a spinoff or split off, and then immediately merging the business with Georgia Gulf or a Georgia Gulf subsidiary in a Reverse Morris Trust transaction.
Following completion of the transaction, which is expected to occur in late 2012 or early 2013, the combined company is expected to have annual revenues of approximately $5 billion and be the third-largest chlor-alkali producer and second-largest vinyl chloride monomer producer in North America.
"This transaction creates a global industry leader with substantial opportunities for long-term growth and enhanced shareholder value," said Paul Carrico, president and chief executive officer of Georgia Gulf.