July 29 PPG Industries Inc will sell its
51 percent stake in photochromic lens unit Transitions Optical
to its partner, France's Essilor International, for
$1.73 billion, PPG said on Monday.
Essilor, an ophthalmic optics company, already holds 49
percent interest in the company. The U.S. specialised chemicals
company said it would look to redeploy the proceeds in core
business acquisitions and share repurchases.
Chief Executive Charles E. Bunch said PPG, which previously
suspended repurchases of shares due to the ongoing negotiations,
was restarting its programme with range of $500 million to $750
million repurchases for the year.
Monday's transaction has an enterprise value of about $3.4
billion, with PPG receiving cash at closing of $1.73 billion
pre-tax or about $1.5 billion after-tax.
In 2012, Transitions Optical had net sales of about $800
Hubert Sagnières, Essilor's chief executive, said the
acquisition of Transitions Optical "is fully aligned with
(Reporting by Sakthi Prasad in Bangalore; editing by Patrick