PPG Industries to sell subsidiary for $1.73B
Jul. 29, 2013
PITTSBURGH (AP) — PPG Industries Inc. will sell its majority stake in lens supplier Transitions Optical to Essilor International for about $1.73 billion in cash.
Essilor, which is based in France, also will acquire PPG's optical sun lens business, and PPG will continue to supply optical dyes and research and development services.
PPG Industries makes paints and coatings for autos, aircraft and other industries. The Pittsburgh company said Monday that it owns a 51 percent stake in Transitions Optical, while Essilor holds a 49 percent share. It plans to use proceeds from the deal on acquisitions and share repurchases, which it will resume doing after suspending buybacks earlier this year.
Transitions Optical supplies photochromic lenses and had about $800 million in revenue last year. Essilor designs and makes a range of lenses to improve and protect eyesight.
The companies expect the deal to close in the first half of next year, if regulators approve it.
PPG Industries shares rose $2.28, or 1.5 percent, to $159.39 in morning trading. They are near the upper end of their 52-week range of $105.87 to $161.47.