Kohlberg Acquires Auto Glass Business from PPG Industries

On September 30, 2008, Kohlberg & Company, L.L.C., through a new company formed by managed funds, acquired the automotive glass and services business of PPG Industries. The new company is named Pittsburgh Glass Works LLC (PGW). PPG received approximately $270 million in net proceeds from the transaction. In addition, PPG will hold a minority ownership interest of approximately 40 per cent in PGW.

PGW's automotive glass and services business supplies automotive OEM windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers, and it supplies and distributes replacement automotive glass products for use in the aftermarket. It also provides insurance claim services through its LYNX Services subsidiary, glass management software through its GTS subsidiary, and e-business solutions through its GLAXIS division.

Kohlberg is a leading private equity firm based in Mount Kisco, NY. Since inception in 1987, Kohlberg has completed more than 100 platform and add-on acquisitions, with aggregate transaction value in excess of $7 billion. Kohlberg has invested approximately $2.3 billion across six private equity funds to date, including through its current $1.5 billion sixth fund, Kohlberg Investors VI.

Pittsburgh-based PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fibreglass. The company has more than 150 manufacturing facilities and equity affiliates and operates in more than 60 countries.

Kohlberg was represented in the US by Ropes & Gray LLP with a team comprised of Todd Boes, Amanda Morrison, Scott Orchard, Spencer Y. Yee and Meghan E. Williams (corporate); Steven R. Rutkovsky, Elissa R. Port, Jessica C. Pettrone and J. Stephen Joe (financing); Eric Elfman, Aaron Harsh and Adam Greenwood (tax); Loretta Richard, Catherine Lucas and Jenny Rikoski (employment and benefits); Jason Dunn, Christopher Mercer, Josephine Greaves, Ann Parker and Valerie LePine (real estate); Coke Cherney (environmental); Deidre Johnson and Jon Linde (antitrust); David McIntosh and Nicole D'Amato (intellectual property); and by Littler Mendelson P.C., with a team comprised of George Tichy and Patricia Shepherd (labour).

Kohlberg was represented in Canada by Stikeman Elliott LLP with a team comprised of John W. Leopold, Warren Silversmith and Kim Le (corporate); Howard Rosenoff, Scott Perrin, Jill Lankin and Mark Christensen (financing); Marie-Andrée Beaudry and Jean-Guillaume Shooner (tax); Andrea Boctor (pension and benefits); Mario Paura (real estate); Vivien Tzau and Marisia Campbell (intellectual property); Nancy Ramalho (labour); Larry Cobb (environmental); and Randall J. Hofley and Kevin Rushton (competition and investment).

PPG was represented by K&L Gates LLP with a team comprised of Maria Trainor and Michelle R. McCreery. The lenders were represented in the US by Latham & Watkins LLP with a team comprised of Han Rhee, Mark Bala, and Brandon Anderson and in Canada by McCarthy Tétrault LLP by Richard T. Higa and John H. Park.