PPG, Georgia Gulf Complete $2.5B Chemicals Deal
PITTSBURGH (AP) — PPG has completed the sale of its $2.5 billion commodity chemicals business to Georgia Gulf, the companies said Monday.
The combination of the former PPG unit and Georgia Gulf has been renamed Axiall Corp., which will start trading Tuesday on the New York Stock Exchange under the "AXLL" ticker.
The PPG unit sold to Georgia Gulf produces chemicals including chlorine for use in agricultural products, water treatment and plastic and paper production, among others. Axiall makes chemicals and building products. It will remain based in Georgia Gulf Corp.'s headquarters, Atlanta.
PPG Industries Inc., which makes paints and coatings for autos, aircraft and other industries, had said in July that it was planning the cash-and-stock deal with Georgia Gulf. At the time, the deal's value came to $2.1 billion, including debt.
PPG said Monday that the deal's value was now about $2.5 billion, which includes $900 million in cash and about $1.6 billion of stock received by PPG shareholders.
Georgia Gulf's stock price has risen 74 percent since the deal was announced in July. Shares rose another $2, or 4 percent, to $52.24 Monday afternoon. The Georgia Gulf corporate name and "GGC" ticker symbol will be retired Monday.
Shares of PPG, which is based in Pittsburgh, fell $5.47, or 3.8 percent, to $138.74 in afternoon trading.