Pittsburgh Glass Works LLC, a leading distributor of automotive glass and service business, is to be sold to LKQ Corp by PPC Industries Inc and Kohlberg and Company LLC, in a deal for $635 million.
PPG had already divested PGW and sold a majority stake in the Pittsburgh Glass Works stocks to Kohlberg in 2008.
The transaction is expected to be completed in the second quarter of 2016.
Michael McGarry, PPG President and Chief Executive Officer, stated that “PGQ’s sale concludes PPG’s longstanding involvement in the automotive glass industry, as we continue to sharpen our focus on building a growing market position in paint, coatings, and specialty materials.”
The transformation of raw materials into glass, which requires extensive facilities and materials, takes place around 2,400 degrees Fahrenheit. Pittsburgh Glass Works has an annual revenue of $1.1 billion and operates about 12 glass manufacturing plants supplying more than 100 distribution centers. The company operates in North American, Europe and China.
LKQ President and CEO Robert L. Wagman said that Pittsburgh Glass Works will expand his company’s markets and “provide tremendous distribution synergy opportunities.”
In a statement, he also revealed that LKQ intends to work with the existing core management team currently at Pittsburgh Glass Works.
LKQ may be breaking into the glass industry, but they are currently a used-vehicle parts distributor. The company has recently been bulking up with mergers and acquisitions. In December, the company announced it would be buying an Italian used parts distributor for $1.14 billion, meant to boost its exposure in the European market.
LKQ reported a revenue of $7.19 billion in 2015, up about 6.7% over the prior year.