Business News
PPG to Acquire Global Coatings Services Provider MetoKote
Thursday 09. June 2016 - PPG (NYSE:PPG) announced today that it has reached a definitive agreement to acquire MetoKote Corporation and its affiliates. MetoKote is a U.S.-based coatings services business with 2015 global sales of approximately $200 million. The transaction is expected to close in the third quarter 2016, subject to customary closing conditions. Financial terms were not disclosed.
MetoKote is headquartered in Lima, Ohio, and has more than 1,500 employees. MetoKote applies coatings to customers manufactured parts and assembled products. It operates on-site coatings services within several customer manufacturing locations, as well as at regional service centers, located throughout the U.S., Canada, Mexico, the United Kingdom, Germany, Hungary and the Czech Republic. Customers ship parts to MetoKote service centers, where they are treated to enhance paint adhesion and painted with electrocoat, powder or liquid coatings technologies. Coated parts are then shipped to the customers next stage of assembly. MetoKote coats an average of more than 1.5 million parts per day.
“This acquisition will help us to better understand and meet our customers critical coatings requirements,” said Viktor Sekmakas, PPG executive vice president. “We are responding to customers requests to streamline the purchasing, delivery and application of coatings by adding MetoKotes capabilities to PPG. This will simplify our customers operations, enabling them to focus on their core competencies of product design and manufacturing. Having a more intimate understanding of our customers coatings needs will help us to offer enhanced, end-to-end solutions and services going forward.”
Sekmakas added, “MetoKote is a leader in coatings services. Its size, breadth of capabilities and geographic reach complement PPGs technology and regional customer base. With this acquisition, we will be able to deliver process efficiency and streamline coatings operations for our customers, helping to drive a new era of innovation.”