Platinum to pay $500m for auto parts division(2)

US billionaire Tom Gores’ Platinum Equity is to buy two of PPG's automotive glass manufacturing units for $500 million.

Platinum Equity has agreed to pay approximately $500 million (€358 million) for two automotive industry-related glass making divisions of PPG Industries.

PPG said in a statement that the sale is part of its long-term plan to focus on coatings and specialty chemicals and glass, as well as reduce its exposure to the US automotive market.

Platinum’s acquisition of these units is expected to close in the fourth quarter.

Platinum, based in Beverly Hills, California, focusses on the steel, chemical manufacturing and auto parts sectors. Its most recent acquisition was the $2 billion purchase of metal processor and distributor Ryerson in July.

Led by US billionaire Tom Gores, Platinum is currently raising its second fund, which an industry source says is likely to exceed its $1.5 billion target. Tom Gores' brother, Alec Gores, recently closed a $1.3 billion fund at his own Southern California firm, Gores Group.