March 3, 2008 -- PPG Industries (NYSE:PPG) has completed its acquisition of NanoProducts Corporation, a developer and manufacturer of nanotechnology: nanomaterials and advanced inorganic nanoparticles designed to improve the physical properties of a wide range of consumer and industrial products. Terms were not disclosed. NanoProducts has an extensive patent estate and operates pilot facilities for the development and manufacture of nanoparticles.
"This acquisition significantly strengthens PPG's nanotechnology patent portfolio and positions us as a world leader in nanoengineered materials," said James A. Trainham, PPG vice president, science and technology. "With these new materials, PPG can offer its customers and development partners unique, high-value solutions. PPG will also license nanotechnology solutions, particularly in areas outside its existing businesses."
According to KeyBanc Capital Markets, which acted as exclusive financial advisor to NanoProducts, the deal is significant because "nanotech companies have traditionally had difficulty in attracting institutional investors or strategic buyers because they are not generally viewed as "mature" enough -- thus a turn off for institutional investors." In addition, KeyBanc says it faced the additional challenge of positioning the company to appeal broadly to both US and international investors and strategic buyers
NanoProducts' nanoparticles are expected to help PPG provide efficient, energy saving products -- and lead to less costly processing. PPG's nanotechnology products and technology include thin films and optically clear nanocomposites for scratch and mar protection as well as reflection of infrared and ultraviolet light from glass.