PPG Industries is offloading its commodity chemicals business in a deal with Georgia Gulf worth about $2 billion.
The total value is about $2.1 billion if debt is included. PPG shareholders get $1 billion in Georgia Gulf Corp. stock, while PPG will receive $900 million in cash.
Under the deal's terms announced Thursday, PPG Industries Inc. will spin off or split the unit into a separate business before handing it over. PPG shareholders will receive 50.5 percent of the new company's shares.
The deal is expected to close later this year or in early 2013.
The unit produces chemicals including chlorine for use in agricultural products, water treatment and plastic and paper production, among others.
Also Thursday, PPG posted its highest-ever net income in the second quarter. The Pittsburgh company earned $362 million, or $2.34 per share, compared with $340 million, or $2.12 per share, a year earlier.
Revenue in the second quarter slipped slightly to $3.96 billion.
But Wall Street expected more. Analysts polled by FactSet forecast net income of $2.36 per share on sales of $4.16 billion.
PPG said it was able to overcome significant weakness in European and Latin American currency exchange rates through cost controls.
Looking ahead, PPG expects continued challenges in its European business and inconsistent growth in North America and Asia.
Its shares rose 71 cents before the opening bell to $104.90. Shares of Georgia Gulf, which is based in Atlanta, jumped $3.84, or 13.3 percent, to $32.69.
