AGC Inc. (“the Company”) hereby announces that it has decided to sell its North American architectural glass business to Cardinal Glass Industries (Cardinal) and reached an agreement with Cardinal today
The transfer deal is subject to the approval of the related authorities and the earliest closing would be July 2021. (*Read the full document here to see graphs and map: https://www.glassglobal.com/profile/documents54863.html )
1. Reason for Business Transfer
Under the medium-term management policy AGC plus-2023 announced in February this year, AGC has strived for improvements of the profitability and asset efficiency of its architectural glass business which have been designated as one of the AGC Group’s priority issues.
Regarding the operations of the architectural glass business in North America, AGC has concluded that it will create further growth opportunities by transferring it to Cardinal Glass Industries who has business trading experience with AGC in the past and is expected to make the most effective use of AGC’s assets and personnel.
2. Outline of Business Transfer
(1) Architectural Glass Business in North America
AGC began architectural glass business in North America in 1988, as it made capital participation in AFG Industries (now AGC Flat Glass North America). Since then, AGC has supplied various energy-saving and superior design high- performance glass products for over 30 years and contributed to the realization of comfortable and affluent life in the region.
(2) Financial Result of North America Architectural Glass Business to be carve-out (FY2020)
(3) Amounts of carve-out Assets and Liabilities to be transferred from Architectural Glass Business in North America (as of March 31, 2021)
(4) Transfer price and payment method*
Transfer price: 450 million US dollars
Payment method: Payment by electronic funds transfer
3. Outline of the Transferee / Cardinal Glass Industries*
4. Schedule*
(1) (2)
Date of contract execution
Date of business transfer
June 15, 2021
July 2021, subject to the approval of the related authorities at the earliest
5. Summary of accounting procedures
This transaction is expected to generate a profit of approximately 25 billion yen, which is expected to be recorded as other income in the consolidated financial results for the third quarter of the fiscal year ending December 31, 2021.
6. Outlook for the future*
The Company is currently examining the full-year consolidated financial forecast for the fiscal year ending December 31, 2021, including the impact of this matter. The Company will make an announcement as soon as it becomes clear.
(Additional Information)*
The plants subject to the business transfer and their facilities
are: Greenland (TN) with Flat glass manufacturing furnaces (2), Coater (1),
Spring Hill (Kansas)
Flat glass manufacturing furnace (1)
and
Abingdon (Virginia) Coater (1)
