U.S. chemicals maker PPG Industries Inc. announced it has reached an agreement to take over Mexican architectural and industrial coatings firm Consorcio Comex for $2.3 billion, as part of the planned expansion of its coatings business portfolio across the globe.

PPG will pay for the acquisition in cash and short-term investments, but the company is also looking at the possibility of funding some portion of the deal through debt. As of March 31, 2014, PPG reported $3 billion of cash and short-term investments on hand. The deal is subject to regulatory approval, as well as customary closing conditions, the chemical company said.

Comex specializes in manufacturing coatings and related products, mostly for the domestic and Central American markets. It has eight manufacturing facilities and six distribution centers, employing a total of 3,900 people. Comex's revenue came in at about $1 billion last year.

According to PPG's chairman and chief executive officer Charles Bunch, the deal will help the company establish a major presence in markets where PPG had previously had "negligible architectural coatings presence."

Marcos Achar Levy, chief executive of Comex, commented that the acquisition will benefit the Mexican firm, as it will allow it to take advantage of a "strategic alliance" that will enable it to develop in times of globalization and highly competitive markets. Becoming an integral part of PPG will result in Comex significantly expanding its reach on the markets it operates.