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PPG to acquire Equa-Chlor

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March 21, 2011 — PPG Industries reached an agreement to buy assets of Equa-Chlor, which produces chlorine, caustic soda and muriatic acid, the paint company announced Monday.

The deal is expected to close during the first half of 2011; financial terms were not disclosed.

“With the acquisition of Equa-Chlor, PPG’s chlor-alkali and derivatives business will gain a strategic foothold in the western United States, in addition to improving our ability to supply key customers throughout the country,” said Michael H. McGarry, PPG’s senior vice president of commodity chemicals. “We believe Equa-Chlor will be a nice complement to PPG’s chlor-alkali and derivatives business.”

Clay Pace, president and CEO of Equa-Chlor, called the deal “an outstanding development for our customers, employees and business partners.” He said the company is committed to a seamless transition.

The acquisition includes Equa-Chlor’s manufacturing operations, which produce roughly 220 tons of chlorine a day. PPG will also acquire Equa-Chlor’s rail cars, which it will integrate into its existing fleet. PPG expects the addition to reduce transportation costs, improve administrative functions and generate positive cash flow from this year.

PPG currently makes chlor-alkali and related products in West Virginia and Canada and through a majority-owned subsidiary in Taiwan. The products are used for purifying drinking water, making bleach, paper and pharmaceuticals, and other uses.

Equa-Chlor is a privately held company with 65 employees based in Longview, Wash. PPG operates in more than 60 countries throughout the globe, serving customers in industrial, transportation, consumer products and construction markets.

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