Beverly Hills, Calif.-based Platinum Equity notified Pittsburgh-based PPG Industries of its intention to terminate its contract to purchase PPG’s automotive glass and services businesses as of Dec 31, 2007.
PPG said that Platinum Equity also filed suit with the Supreme Court of the State of New York, alleging the Platinum group is not obliged to consummate the agreement.
While the company did not comment on the specifics of the litigation, PPG said it intends to enforce its rights under the agreement with Platinum Equity.
PPG said that in the event the transaction does not close with the Platinum group, it would continue to explore other strategic alternatives for the automotive and services businesses with the goal of maximizing shareholder value.
PPG is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiberglass.