PPG Industries

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PPG Industries, Inc.
Formerly called
Pittsburgh Plate Glass Company (1883–1968)
Public
Traded as
Industry Chemicals
Founded 1883; 135 years ago (1883)
Creighton, Pennsylvania, U.S.
Founders
Headquarters Pittsburgh, Pennsylvania, U.S.
Area served
Worldwide
Key people
Michael H. McGarry
(Chairman & CEO)
Products Basic and industrial chemicals, decorative paints, industrial (re)finishing products, coatings
Revenue Decrease US$15.33 billion (2015)
Increase US$1.92 billion (2015)
Decrease US$1.40 billion (2015)
Total assets Decrease US$17.07 billion (2015)
Total equity Decrease US$4.98 billion (2015)
Number of employees
46,000 (2015)
Website www.ppg.com
PPG World Headquarters in Pittsburgh

PPG Industries, Inc. is an American Fortune 500 company and global supplier of paints, coatings, specialty materials, and fiberglass. With headquarters in Pittsburgh, Pennsylvania, PPG operates in more than 70 countries around the globe. By revenue it is the largest coatings company in the world.[1] It is headquartered in PPG Place, an office and retail complex in downtown Pittsburgh, and is known for its glass facade designed by Philip Johnson.

Founding and 20th century

Pittsburgh Plate Glass Company plaque in the plaza at PPG Place

Pittsburgh Pits furnaces with locally produced natural gas, an innovation which rapidly stimulated widespread industrial use of the cleaner-burning fuel.[2]

PPG expanded quickly. By 1900, known as the "Glass Trust", it included 10 plants, had a 65 percent share of the U.S. plate glass market, and had become the nation's second largest producer of paint.[3] Today, known as PPG Industries, the company is a multibillion-dollar, Fortune 500 corporation with 150 manufacturing locations around the world. It now produces coatings, glass, fiberglass, and chemicals.[2]

Pitcairn served as a director of PPG from its start, its president from 1897 to 1905, and chairman of the board from 1894 until his death.[4]

20th century

On 19 December 1968 the company changed its name to PPG Industries, Inc., to show its diverse offerings. Ditzler Color Company, established in 1902 in Detroit as an automotive color concern, was purchased by Pittsburgh Plate Glass Company (now PPG) in 1928. In the mid-1980s, Cipisa, a Spanish paint company was acquired and renamed PPG Ibérica. The CEO of Cipisa, Pere Nadal Carres became CEO of PPG Ibérica.[citation needed] In 1990 PPG founded Transitions Optical as a joint venture with Essilor.[5]

21st century

In October 2000, PPG Industries announced it had agreed to buy Courtaulds Aerospace for $512.5 million.[6] Based in Glendale, California, the aerospace business has annual sales of approximately $US240 million, employs 1,200 people. It manufactures sealants in Glendale, California, US and Shildon, England; coatings and sealants in Mojave, California, US; glazing sealants at Gloucester City, New Jersey, US; and coatings at Gonfreville, France. The business also operates 14 application-support centres in North America, Europe, Africa, Asia and Australia.

In 2006, the company rolled out a two-tiered pay system which resulted in massive strikes at union locations across the country. The system, now in place company-wide for non-salaried employees, provides lower rates of pay and fewer benefits to those employed after the roll-out than those employed before the roll-out. In West Virginia, after a bitter five month strike, the company still refused to eliminate the two tiered system. In Lake Charles, LA, the employment contracts of union employees had to be extended during a strike regarding the two-tiered system.[7]

In 2007, the company was involved in a lawsuit on failing to disclose a purchase reduction of its two major auto glass customers.[8] On 2 January 2008, PPG acquired the SigmaKalon Group of companies for $3.2 billion from private investment firm Bain Capital, strongly increasing its paint and specialty coatings business.[9]

In 2008, PPG renamed their automotive glass division PGW (Pittsburgh Glass Works) and sold a majority of it to Kohlberg & Company. PPG retained 40% ownership of PGW until March 2016 when they sold their stake to automotive parts salvage company LKQ [10]

In April 2013, PPG completed the acquisition of AkzoNobel North American architectural coatings business including Glidden, Liquid Nails, and Flood brands.[11] 2013 revenue was US$15.1 billion, while assets were US$15.9 billion.[citation needed]

On April 1, 2014, PPG finalized the sale of Transitions Optical to its joint venture partner, Essilor International of France, however, PPG’s technical center in Monroeville will continue to provide research and development services for Transitions.[12][13] On November 5, 2014 PPG closed a deal, to purchase Mexican Consorcio Comex, S.A. de C.V. (“Comex”) for $2.3 billion [14]

In April 2015, PPG Industries completed the acquisition of REVOCOAT, a global supplier of sealants.[citation needed] Chuck Bunch remains Executive Chairman, while Michael McGarry serves as President & CEO.

In July 2016, PPG announced its sale of the flat glass business to Vitro, a glass manufacturer based in Mexico, for $750 million.[15]

In October 2016, Pittsburgh Post-Gazette announced the acquisition of the naming rights to Consol Energy Center by PPG; the facility will be known as PPG Paints Arena.[16]

Attempted acquisition of AkzoNobel

In March 2017, the company launched an unsolicited takeover bid of €20.9 billion, which was promptly rejected by AkzoNobel’s management.[17] Days later, the company launched an increased bid of €24.5 billion ($26.3 billion), which was again rejected by AkzoNobel’s management.[18] A number of shareholders urged AkzoNobel to explore the offer and subsequent negotiations.[19][20] In April, activist investor Elliot Investors called for the removal of the Chairman of Akzo, Antony Burgmans, following Akzo's refusal to enter talks with PPG. Elliott, which has a 3.25% stake in the company, claimed it was one of a group of investors that met the Dutch legal threshold of 10% voting-share support, which is needed to call an extraordinary meeting to vote on a proposal to remove Burgmans.[21] On April 13, Templeton Global Equity said it was among another group of investors calling for an extraordinary meeting of AkzoNobel shareholders to discuss Burgmans' continued tenure as Chairman.[22] Later in the same month Akzo outlined its plan to separate its chemicals division and pay shareholders €1.6 billion in extra dividends, in order to attempt to hold off PPG.[23][24] The new Akzo strategy was dismissed by PPG, which claimed that their offer represented better value for shareholders,[25][26] supported by activist Akzo shareholder Elliot Advisors.[27] On April 24, a day before Akzo's annual meeting of shareholders, PPG increased its final offer by approximately 8% to $28.8 billion (€26.9 billion, €96.75 per share), with Akzo's share price rising 6% to a record of €82.95 per share.[28] Akzo shareholder Columbia Threadneedle Investments urged the company to open dialogue with PPG,[29] whilst PPG claimed that the deal would add to earning within its first year.[30] Great Britain's largest pension scheme investors, Universities Superannuation Scheme (USS), urged Akzo to engage with PPG.[31] On 2 May, Reuters revealed that the supervisory board of Azko was meeting to discuss how to deal with PPG's third offer, still maintaining it did not value the company highly enough.[32] In early May, Akzo again rejected PPG's bid, citing the deal still undervalues the company, as well as potentially facing antitrust risks, and not addressing other concerns such as "cultural differences". Under Dutch company law, PPG must now decide to either make a formal bid or walk away.[33] In early June PPG chose to abandon pursuit.[34][35]

Environmental record

In November 2010, PPG agreed to remove 700,000 tons of toxic waste from Canal Crossing, a brownfield site in Jersey City, New Jersey where the company operated a chromium processing plant between 1954 and 1963.[36][37][38][39] Stringent standards were agreed to in a federal court settlement.[40]

Lime Lake Reclamation Project of PPG Industries in Barberton, Ohio, received special awards in the National Beneficial Use of Biosolids Program from Environmental Protection Agency’s (EPA) region 5 in 1998.[citation needed]

In sports

PPG has been involved in sports for numerous years, including being the primary sponsor for the CART Indy car series in the 1980s-1990s. It has also been an associate sponsor with the present day IndyCar Series, and in the Monster Energy NASCAR Cup Series.[41] Since the race's inception in 1994, PPG has sponsored the trophy for the Brickyard 400.

On October 4, 2016, it was announced that The Consol Energy Center would be giving up its naming rights, and transferred to PPG, making the arena named the PPG Paints Arena.[42]

Gallery

See also

References

  1. ^ "Coatings World". 
  2. ^ a b "125 Anniversary". PPG Industries. 2008. Retrieved Nov 10, 2008. 
  3. ^ Garrett, Jeff (Aug 1, 2006). "Our Local Heritage : Tarentum-Area Glass Companies". Alle-Kinski Today Online. Retrieved Nov 10, 2008. 
  4. ^ Ingham, John M. (1983). Biographical Dictionary of American Leaders. Greenwood Publishing Group. pp. 1101–1102. ISBN 0-313-21362-3. 
  5. ^ Gannon, Joyce (January 15, 2013). "PPG, Essilor may make transition - Pittsburgh Post-Gazette". Pittsburgh Post-Gazette. 
  6. ^ "PPG to Acquire Former Courtaulds Aerospace Business from Akzo Nobel". pcimag.com. Retrieved 13 November 2015. 
  7. ^ "PPG union workers contract extended". Retrieved 2017-08-22. 
  8. ^ Gannon, Joyce (January 4, 2008). "Retired exec returns to PPG auto glass unit". Pittsburgh Post-Gazette. Retrieved Jul 18, 2013. 
  9. ^ "PPG Completes Acquisition of SigmaKalon Group". Reuters. January 2, 2008. 
  10. ^ Research, Zacks Investment. "PPG Industries (PPG) to Sell Minority Interest in PGW". 
  11. ^ "PPG completes acquisition of AkzoNobel North American architectural coatings business" April 1, 2012
  12. ^ Gannon, Joyce (April 1, 2014). "PPG finalizes sale of Transitions Optical for $1.73 billion - Pittsburgh Post-Gazette". Pittsburgh Post-Gazette. 
  13. ^ http://www.ppg.com/optical/opticalproducts/Pages/default.aspx
  14. ^ "PPG completes acquisition of Comex" November 5, 2014
  15. ^ "Mexico's Vitro to buy PPG's flat glass unit for $750 million". July 21, 2017 – via Reuters. 
  16. ^ "Consol Energy Center has become PPG Paints Arena". 
  17. ^ "Subscribe to read". 
  18. ^ "PPG Makes Revised Proposal to Combine with AkzoNobel". 
  19. ^ "AkzoNobel shareholders turn up the heat on Dulux owner over rejected PPG takeover bid". 
  20. ^ Whitfield, Graeme (24 March 2017). "Largest shareholder at big North East employer AkzoNobel urges takeover talks". 
  21. ^ Sherman, Natalie (12 April 2017). "Akzo Nobel faces call to axe chairman amid takeover battle" – via www.bbc.co.uk. 
  22. ^ Editorial, Reuters. "Another Akzo Nobel investor calls for meeting on chairman". 
  23. ^ Editorial, Reuters. "Akzo Nobel unveils plan to separate chemicals arm, pay special dividend". 
  24. ^ Editorial, Reuters. "Akzo Nobel beats on first quarter operating profit, sees 2017 growth". 
  25. ^ Editorial, Reuters. "PPG Industries says Akzo Nobel's new plan is worse for shareholders". 
  26. ^ Keidan, Toby Sterling and Maiya. "PPG dismisses Akzo Nobel defence, presses takeover case". 
  27. ^ Editorial, Reuters. "Elliott calls Akzo Nobel strategic plan 'incomplete'". 
  28. ^ Sterling, Toby. "PPG raises offer for Akzo Nobel to $29 billion". 
  29. ^ Editorial, Reuters. "Akzo Nobel shareholder Columbia Threadneedle urges talks with PPG". 
  30. ^ Editorial, Reuters. "Akzo Nobel purchase would add to earnings in first year - PPG CEO". 
  31. ^ Editorial, Reuters. "Akzo Nobel investor USS backs call for PPG talks over revised bid". 
  32. ^ Roumeliotis, Greg. "Exclusive - Akzo sees latest PPG bid inadequate, weighs options-sources". 
  33. ^ Sterling, Toby. "Akzo Nobel declines third takeover proposal from PPG". 
  34. ^ http://uk.reuters.com/article/us-akzo-m-a-ppg-inds-bid-idUKKBN18S6KU
  35. ^ http://uk.reuters.com/article/uk-akzo-nobel-m-a-ppg-inds-letter-idUKKBN18T23Y
  36. ^ McDonald, Terrence T. (March 6, 2011). "More than 50,000 tons of soil removed from chromium site in Jersey City". The Jersey Journal 
  37. ^ Frohling, John B. (April 15, 2009). "Morris Canal Associates/Proposed Settlement Agreement Between PPG and the City of Jersey City" (PDF). www.state.nj.us/Frohling Assoc, LLC. 
  38. ^ Murray, Brian T. (June 12, 2009). "N.J. delays decision on setting stricter limits on carcinogen chromium". The Star-Ledger 
  39. ^ Arrue, Karina L. (October 21, 2010). "Jersey City is only New Jersey recipient of $2.3 million in federal grant money to fund planning for 7,000-unit development on 111-acre wasteland currently being cleaned of toxins". Jersey Journal. Retrieved 2011-04-03 
  40. ^ Navarro, Miyera (April 5, 2011). "Better Cleanup Planned at Former Chrome Plant". The New York Times. Retrieved 2011-04-06 
  41. ^ "Dover International Speedway - Day 1 Photos and Images | Getty Images". www.gettyimages.com. Retrieved 2016-10-04. 
  42. ^ "PPG to acquire naming rights to Consol Energy Center". Retrieved 2016-10-04. 

External links

  • Official website
    • Business data for PPG Industries: Google Finance
    • Yahoo! Finance
    • Reuters
    • SEC filings
  • PPG Corporate website
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