LKQ Corp. has signed a definitive agreement to acquire Pittsburgh Glass Works LLC (PGW) from private equity firm Kohlberg & Co. LLC and PPG Industries Inc. for an enterprise value of $635 million. PGW is a leading global distributor and manufacturer of automotive glass products. PGW’s business comprises wholesale and retail distribution services, automotive glass manufacturing and retailer alliance partnerships. PGW operates approximately 120 distribution branches serving more than 7,000 automotive glass retailer shops across North America. In addition, PGW operates 12 automotive glass fabrication facilities in North America, Europe and China.

The transaction is expected to be completed in the second quarter of 2016 and is subject to customary closing conditions and necessary regulatory approvals.

“We are excited to be partnering with PGW, and look forward to working with the existing core management team at PGW to continue to invest in and grow its business while continuing the high quality service to all its customers. PGW reflects LKQ’s commitment to provide a one-stop-shop solution to the North American collision repair industry by adding automotive glass to our product offerings. PGW is the largest pure-play provider in the $3.5 billion North American automotive glass market. This acquisition will expand our addressable market in North America and globally; and simultaneously offers tremendous distribution synergy opportunities with our existing network,” said Robert Wagman, president and CEO of LKQ Corp.

Jim Wiggins, chairman and CEO, Pittsburgh Glass Works LLC, commented, “PGW transformed itself into a strong global competitor of automotive glass and enjoyed tremendous market and financial success under the stewardship of Kohlberg and PPG. We are excited to become part of the LKQ family, and expect that the company will continue on its growth and success trajectory under LKQ.”

PGW’s revenue for the 12 months ended Oct. 31, 2015, was approximately $1.07 billion, and LKQ expects the transaction to be accretive to its earnings in 2016. These projected results exclude restructuring and acquisition related expenses.

The company intends to finance the acquisition with borrowings under its revolving credit facility. As of Feb. 25, the company had approximately $2.2 billion of available borrowing capacity on its credit facility.

Following this announcement, PPG announced that it will divest its approximately 40 percent minority ownership interest in PGW.

“PGW’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,” said Michael McGarry, PPG president and CEO.

PPG has held a minority interest in PGW since 2008, when it completed the sale of its automotive glass and services business to PGW.

Jefferies LLC and Nomura Securities International served as financial adviser, and Ropes and Gray LLP acted as legal counsel to PGW. K&L Gates LLP served as legal counsel to LKQ.