PPG to acquire global coatings services provider MetoKote

MetoKote is a Lima, Ohio-based coatings services business with 2015 global sales of approximately $200 million. The transaction is expected to close in the third quarter 2016, subject to customary closing conditions.

 

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PPG has reached an agreement to acquire MetoKote and its affiliates. MetoKote is a Lima, Ohio-based coatings services business with 2015 global sales of approximately $200 million. The transaction is expected to close in the third quarter 2016, subject to customary closing conditions. Financial terms were not disclosed.

 

MetoKote has more than 1,500 employees and operates on-site coatings services within several customer manufacturing locations, as well as at regional service centers, located throughout the U.S., Canada, Mexico, the United Kingdom, Germany, Hungary and the Czech Republic. Customers ship parts to MetoKote service centers, where they are treated to enhance paint adhesion and painted with electrocoat, powder or liquid coatings technologies. Coated parts are then shipped to the customer’s next stage of assembly. MetoKote coats an average of more than 1.5 million parts per day.

 

“This acquisition will help us to better understand and meet our customers’ critical coatings requirements,” said Viktor Sekmakas, PPG executive vice president. “We are responding to customers’ requests to streamline the purchasing, delivery and application of coatings by adding MetoKote’s capabilities to PPG. This will simplify our customers’ operations, enabling them to focus on their core competencies of product design and manufacturing. Having a more intimate understanding of our customers’ coatings needs will help us to offer enhanced, end-to-end solutions and services going forward.”

 

Platinum Equity, a global investment firm with a portfolio of approximately 25 operating companies that serve customers around the world, has owned MetoKote since October 2013.

 

"MetoKote's success is a result of a great partnership with the management team and a lot of hard work by the company's dedicated employees," said Platinum Equity Partner Bob Wymbs. "Working together we have grown the business, diversified its customer base and positioned MetoKote for long-term success."

 

Mr. Wymbs said that during Platinum Equity's ownership, MetoKote implemented a range of strategic and operational initiatives that have helped the company grow and adapt to changes in the market. Platinum Equity acquired MetoKote in October 2013.

 

"Platinum Equity has been a great partner, from helping us set strategy to providing the support we needed to execute," said MetoKote President and CEO Jeff Oravitz. "Working together we realigned the company's global footprint, sharpened our focus on high-growth markets, and made important investments to strengthen key customer relationships. We are on a strong path for continued growth and success."