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Black & Decker cuts fourth-quarter outlook

BY HBSDEALER Staff

The Towson, Md.-based power tool company reported that business conditions in North America have been worse than expected and that based on this, the company expects to report a low single-digit rate of sales decrease. The company’s previous guidance was for modest organic sales growth.

The company also announced its intention to recall certain DeWalt XRP cordless drills manufactured during the past 18 months. They will incur a pre-tax charge of approximately $25 million in the fourth quarter. The company said no injuries have been reported in relation to this recall.

Additionally hampering results, Black & Decker has reached a settlement with the United States government over income tax litigation for $50 million. The company announced previously that if the IRS won its case, it would have cost the company approximately $180 million.

The company will release fourth-quarter results in January.

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PPG Industries receives approval for major acquisition

BY HBSDEALER Staff

PPG Industries will sharply expand its worldwide offerings when it acquires SigmaKalon Group, a Netherlands-based producer of architectural, decorative and protective coatings, as well as coatings for the marine and industrial markets.

The total transaction value, including assumed debt, is approximately 2.2 billion Euros (US$3.22 billion). PPG said it anticipates the acquisition will close within the next 45 days. The deal was approved this week by European Union regulators.

PPG employs more than 34,000 people worldwide with manufacturing facilities and other operations in 25 countries. SigmaKalon employs approximately 10,000 people and sells coatings in more than 40 countries worldwide.

SigmaKalon Group is owned by Bain Capital Partners, a private investment firm with interests in a number of home improvement companies. Bain Capital, along with Carlyle Group and Clayton, Dubilier & Rice, this fall purchased Home Depot’s HD Supply unit for $8.5 billion — the LBM unit of HD Supply has since been sold to Pro-Build. In October, Bain Capital also purchased the kitchen and bath assets of American Standard for $1.76 billion.

SigmaKalon makes decorative coatings under several international brands, including Avi, Eureka and Prominent Paints. SigmaKalon products are sold throughout Eastern and Western Europe, Africa and Asia. PPG brands include Pittsburgh Paints, Olympic, Monarch, Porter Paints and Manor Hill.

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Idaho Veneer cuts back production

BY HBSDEALER Staff

Poor market prices will lead Idaho Veneer to cut back lumber production at its Post Falls and Samuels facilities, according to a report in the Spokane, Wash., Spokesman-Review.

According to the report, company officials said the cutbacks won’t affect the approximately 100 workers at the Post Falls facility and 50 at the Samuels facility. Those employees will switch to veneer production.

Dan Malloy, company co-owner, said the veneer market has been stable while the demand for lumber has gone down sharply, due to the fact that fewer new homes are being built.

Idaho Veneer produces lumber, white pine, cedar and Douglas fir veneer for furniture at the two facilities.

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