PPG will hold a 66 percent interest and Apogee a 34 percent interest in the new company. Subject to regulatory approval, PPG Auto Glass is expected to begin operating this summer.

    "Creation of PPG Auto Glass grew from mutual exploration of opportunities to improve efficiencies and service in our respective auto replacement glass distribution operations," said Garry A. Goudy, PPG vice president of automotive replacement glass. "We operate more than 110 wholesale distribution branches, while Apogee operates about 75 branches."

    According to Russell Huffer, Apogee chairman and chief executive officer, "Both of our firms produce auto glass parts that consumers buy at installation shops throughout the U.S. The venture will increase geographic coverage, improve efficiency, and provide service benefits that will allow the new company to meet PPG's and Apogee's installer-customer needs more effectively."

    The new venture will not include PPG's auto replacement glass production and truckload sales business, or Apogee's manufacturing and retail installation operations. Apogee's Harmon AutoGlass division, the company's retail unit, owns about 325 installation shops. PPG has no U.S. retail shops, nor will PPG Auto Glass.

    The new venture is expected to employ more than 1,200 people from PPG's and Apogee's existing auto replacement glass distribution units.

    PPG is North America's largest producer of flat and fabricated glass, and its leading producer of automotive replacement glass. The company is also a major global producer of automotive, industrial and packaging coatings; continuous-strand fiber glass reinforcements and yarns, and industrial and specialty chemicals, as well as a leading North American producer of decorative and maintenance paints. PPG's 1999 sales were $7.8 billion.

    Apogee is a world leader in technologies involving the design and development of value-added glass products, services and systems. The company is organized into two business segments; the Glass Technologies businesses are leaders primarily in architectural glass and high-end glass coatings for electronics, while the Glass Services businesses are leaders in replacement auto glass and building glass services. Apogee's annual sales are nearly $1 billion.

    Update > On June 26, Apogee Enterprises, Inc.  and PPG Industries of Pittsburgh were notified by the Federal Trade Commission that they had received early termination of the waiting period for their filings under the Hart-Scott-Rodino Antitrust Improvements Act regarding the proposed formation of PPG Auto Glass L.L.C., a joint venture combining the U.S. automotive replacement glass distribution businesses of each company.

    This was the last significant condition to closing the venture, which was announced June 13. The parties are focused on planning a smooth transition of their respective automotive glass distribution businesses to PPG Auto Glass, which is expected to begin operations this summer. When the venture is finalized, Apogee intends to communicate its financial implications for the company.

Update > July 31, Management Team Announced

Update > August 12, Official Contract Highlites