PPG and Tikkurila Agree on Revised Offer

PPG and Tikkurila announced that they have amended the previously announced definitive agreement, under which PPG will acquire all issued and outstanding stock of Tikkurila in an all-cash transaction, to increase the cash offered for each share of Tikkurila stock. Pursuant to the revised offer, Tikkurila shareholders will receive €27.75 in cash for each share of Tikkurila stock they own, for a total transaction value of approximately €1.24 billion, including the assumption of debt and cash. The increased offer price was due to Tikkurila’s receipt of a proposal regarding a competing offer. Both companies expect the tender offer for all outstanding shares to commence on or around January 15. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.

“The combination of PPG and Tikkurila is highly synergistic due to the complementary geographies, product offerings and cultures,” said Michael McGarry, PPG chairman and chief executive officer. “We will be able to extend the reach of the strong Tikkurila products, and immediately utilize Tikkurila’s well-established distribution network across the Nordic region for a wide variety of PPG products. From a cost standpoint, the Tikkurila management team has implemented a broad margin improvement program over the last couple of years, and we will continue that momentum with supply chain and other traditional acquisition-related synergies. This combination, including the synergy capture, will result in significant value creation for our shareholders, and is to the benefit of both companies’ employees, customers and all other stakeholders.”

Additional details about the tender offer are contained in the attached Nasdaq Helsinki stock exchange release.

About PPG Industries

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.1 billion in 2019. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

About Tikkurila

Tikkurila was established in 1862, and is headquartered in Vantaa, Finland. Tikkurila operates in eleven countries and its 2,700 dedicated professionals share the joy of building a vivid future through surfaces that make a difference. The company is a leading producer and distributor of decorative paint and coatings with more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. Tikkurila develops premium products and services that provide its customers with quality that will stand the test of time and weather. In 2019, revenue totaled EUR 564 million. The company is listed on Nasdaq Helsinki.

Contact:

Mark Silvey – Corporate Communications – silvey@ppg.com – (412) 434-3046

Source: PPG Industries, Inc.