PPG Industries and subsidiary PPG Colombia have agreed to purchase the coatings businesses of Colpisa Colombiana de Pinturas, a privately owned Colombian coatings company, and its affiliates.
Founded in 1973, Colpisa, based in Itagüi, near Medellin, manufactures and distributes coatings for industrial, automotive OEM and refinish, and architectural customers in Colombia and Ecuador. The company’s coatings manufacturing facility in Colombia employs about 400 people.
Colpisa Colombiana de Pinturas
|The company manufactures protective, automotive and architectural coatings for the Colombian and Ecuadoran markets.|
Colpisa has been a technology licensee of PPG automotive OEM coatings since 1996 and a distributor of PPG automotive refinish products since 2004.
Colombian Coatings Presence
The transaction is expected to close by the end of the first quarter 2012, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed.
“By acquiring Colpisa, PPG builds on a successful relationship and gains the opportunity to expand our coatings presence in Colombia to directly serve and grow with automotive manufacturers,” said Tim Knavish, PPG vice president, automotive OEM coatings, Americas.
“PPG intends to build upon Colpisa’s strong manufacturing and distribution practices as the Colombian economy expands and more automobiles are built and sold in the region.”
Automotive OEM Market
According to Knavish, PPG would become the only major global coatings supplier with a direct automotive OEM manufacturing presence in Colombia. PPG currently has no manufacturing sites in Colombia or Ecuador, but does supply protective and marine coatings to the region, in addition to its technology and distribution relationship with Colpisa.
“As an automotive refinish coatings leader, we are pleased to add Colpisa’s automotive refinish business to our global portfolio,” said John Outcalt, PPG vice president, global automotive refinish. “This acquisition is further evidence of PPGs commitment to grow our coatings presence in Latin America.”
The acquisition will position PPG as a leading provider of automotive refinish products in Colombia with the ability to grow and serve local customers through an established distribution network, Outcalt said.
Founded in 1883, PPG has global headquarters in Pittsburgh and operates in more than 60 countries. Sales in 2010 were $13.4 billion.