Paints, coatings, and materials supplier PPG has reached a definitive agreement to acquire MetoKote Corp. and its affiliates. MetoKote is a U.S.-based coatings services business, with global sales of approximately $200 million in 2015.
The transaction is expected to close in the third quarter of 2016, subject to customary closing conditions. Financial terms were not disclosed.
MetoKote is headquartered in Lima, Ohio, and has more than 1,500 employees. MetoKote applies coatings to customers’ manufactured parts and assembled products. It 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 their parts to MetoKote service centers, where they are treated to enhance paint adhesion and painted with electrocoat, powder, or liquid coatings technologies. The coated parts are then shipped to the customer’s next stage of assembly. MetoKote says it coats an average of more than 1.5 million parts each day.
“This acquisition will help us to better understand and meet our customers’ critical coatings requirements,” says Viktor Sekmakas, executive vice president at Pittsburgh, Pennsylvania-based PPG. “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.
“MetoKote is a leader in coatings services,” Sekmakas adds. “Its size, breadth of capabilities and geographic reach complement PPG’s technology and regional customer base. With this acquisition, we will be able to deliver process efficiency and streamline coatings operations for our customers, helping to drive a new era of innovation.”