PPG Industries Inc. has sold a controlling interest in its automotive glass business to the private equity firm Kohlberg & Co. LLC in a deal valued at $330 million.
Kohlberg, of Mount Kisco, N.Y., will form a new company to run the glass business, and PPG will retain a 40 percent interest in that company.
The deal, announced last week, will net PPG $270 million in cash.
Last year, the Pittsburgh company announced it would sell the glass business to the private equity firm Platinum Equity. But the $500 million deal fell apart after Platinum wanted to renegotiate, alleging PPG had misrepresented the health of the business.
At the time, PPG said that if the deal with Platinum Equity did not close, it would explore strategic alternatives for the glass business.
"This transaction is another positive step forward in our portfolio transformation," PPG CEO Charles Bunch said in a statement. "It enables us to focus more on coatings and specialty products and significantly reduces PPG's exposure to the U.S. automotive market."
PPG Industries has been making glass since 1883, when the company was founded as the Pittsburgh Plate Glass Co. It became an automotive supplier in the 1920s.
PPG's automotive glass and services business supplies original-equipment windshields, rear and side windows, sunroofs and assemblies for auto and truck manufacturers and suppliers. It also distributes aftermarket automotive glass products. c
Reuters contributed to this report