PPG Industries aims to use cash, short-term investments for Comex acquisition but debt possible

By Lisa Kerner

Charlotte, N.C., June 30 – PPG Industries, Inc. agreed to acquire Consorcio Comex, SA de CV for $2.3 billion, including assumed debt, said chairman and chief executive officer Charles Bunch during a conference call on Monday.

“We will likely be using our existing cash and short-term investments to fund the deal,” Bunch said.

“However, we have not ruled out the possibility of utilizing debt and we will evaluate the most advantageous financing situation for PPG between now and the transaction closing.”

The transaction is expected to close in the next several months.

PPG reported $3 billion of cash and short-term investments on hand as of March 31, according to presentation materials.

During the question and answer portion of the call, executives noted PPG could do the transaction with cash but may consider the capital markets if it would benefit shareholders.

Consorcio Comex is an architectural and industrial coatings company based in Mexico City, Mexico.

PPG is a diversified coatings and chemical manufacturing company based in Pittsburgh.

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