PPG talks Transitions’ ownership with Essilor

PPG Industries has announced that it is in discussions with Essilor over the future of their joint venture and PPG consolidated subsidiary Transitions Optical.

As majority shareholder PPG holds a 51 per cent interest in the joint venture companies, while Essilor holds the remaining 49 per cent and is the largest customer of Transitions Optical.

The two companies have worked together as business partners for more than 22 years in connection with Transitions, which was set up in 1990.

PPG, which said that both PPG and Essilor had been important contributors to the success of Transitions, added that it could not predict the outcome of its discussions with Essilor. It suggested that there could be a modification of the current joint venture structure, a sale of all or a portion of PPG’s interest in Transitions to Essilor, or a sale of all or a portion of Essilor’s interests in Transitions to PPG.

It added that these outcomes could result from a negotiated transaction or from the exercise of contractual rights between the parties.

‘Under certain circumstances, which PPG does not believe have yet occurred, either PPG or Essilor may have the right to specify a price at which the other party could elect to sell its interests or buy the first party’s interests in one or more of the Transitions Optical joint venture companies,’ it said.

PPG added that the discussions were likely to continue over the next several months, when Transitions would continue to operate its business without interruption or change to customer service.