PPG has reached a definitive agreement to acquire automotive coatings manufacturer Hemmelrath. The transaction is expected to close in the first half of 2019, subject to customary closing conditions. Financial terms were not disclosed.
Headquartered in Klingenberg, Germany, Hemmelrath is a family-owned manufacturer of coatings for automotive OEMs. Hemmelrath supplies automotive plants worldwide, and more than 7 million vehicles are coated with its products each year.
“We are excited to add Hemmelrath to our robust and diversified automotive coatings offering. This acquisition is another step forward in our strategic growth plan that will provide further value to our customers and shareholders,” said Michael McGarry, PPG chairman and CEO.
With more than 450 employees, Hemmelrath operates manufacturing facilities in Klingenberg and Erlenbach, Germany; Jilin, China; Duncan, South Carolina, United States; and Indaiatuba, Brazil.
“The fit between Hemmelrath and PPG is complementary. The acquisition will enhance PPG’s automotive coatings offering, and add formulating and manufacturing solutions,” added Rebecca Liebert, PPG senior vice president, automotive coatings.