By: Frank Esposito
January 17, 2013
ATLANTA — Georgia Gulf Corp. — a major producer of PVC and related products — will operate as Axiall Corp. after its merger with the commodity chemicals business of PPG Industries.
The merger is expected to be completed early this year. In a Jan. 14 news release, Georgia Gulf President and CEO Paul Carrico said that "the new and distinctive [Axiall] brand represents a clear break from the legacy names of the two businesses."
Carrico — who also will lead the new company — added that the new name "gives us the flexibility to enter new markets, make future acquisitions and diversify our portfolio without the need to rebrand our organization."
Axiall will be based in Atlanta, where Georgia Gulf has been located. The new firm will have annual sales of about $5 billion and will employ 2,000.
The merger was announced in July. Shareholders of Pittsburgh-based PPG will have a 50.5 percent stake in Axiall. The deal includes a $900 million cash payment from Georgia Gulf to PPG, as well as the new firm taking on almost $200 million in debt.
Georgia Gulf ranks as one of North America's largest makers of PVC resin and compounds. It is also a major player in PVC-based construction products. PPG products in the deal include PVC feedstocks ethylene dichloride and vinyl chloride monomer.