AGC (Asahi Glass Co., Ltd.; Head Office: Tokyo; President & CEO: Kazuhiko Ishimura) announces that, on December 29, 2014, the AGC Group closed the transactions contemplated by an asset purchase agreement with Trulite Glass Company, LLC and completed the transfer of the assets of the AGC Group’s commercial fabrication glass business in the United States, which is operated by AGC Flat Glass North America, Inc. (AFNA) and its subsidiary Poma Glass & Specialty Windows Inc., a consolidated subsidiary of AGC.
1. Reason for the transfer of business
The AGC Group has been striving to improve the earnings of its North American architectural glass business through continuous structural reforms, but the business has continued to underperform for the last several years. As a further measure to achieve an earnings recovery, the AGC Group has decided to transfer the assets of AFNA’s commercial fabrication glass business in the United States to Trulite Glass Company, LLC. The AGC Group aim to restore the profitability of the architectural glass business in the region by focusing on the core strength of the business in manufacturing glass and innovating new coating technologies.
2. Transferor’s information
-Company name: AGC Flat Glass North America, Inc.
-Location: Alpharetta, GA, U.S.A.
-Business Operation: Manufacture and Sale of architectural and automotive glass -products
-Capital: 810.3 million US Dollar
-Ownership: AGC 100%
3. Transferee’s information
-Company name: Trulite Glass Company, LLC
-Location: Deerfield Beach, FL, U.S.A.
-Business Operation: Manufacture and Sale of fabricated architectural glass products
-Ownership: Trulite Glass & Aluminum Solutions, LLC 100%
-Relationship with AGC: No capital, human resources or business transaction relationship
4. Financial impact
This business transfer is expected to cost approximately 4.5 billion Japanese yen in expenses for restructuring programs which will be recorded in the fourth quarter of this fiscal year. The AGC Group will make a prompt announcement if there are any changes to the current forecast.