07/29/2013 07:00 EDT | Updated 09/28/2013 05:12 EDT

PPG Industries plans to sell Transitions Optical subsidiary to Essilor Intl for $1.73 billion

PITTSBURGH, Pa. - PPG Industries Inc. will sell its majority stake in lens supplier Transitions Optical to Essilor International for about $1.73 billion in cash.

Essilor, which is based in France, also will acquire PPG's optical sun lens business, and PPG will continue to supply optical dyes and research and development services.

PPG Industries makes paints and coatings for autos, aircraft and other industries. The Pittsburgh company said Monday that it owns a 51 per cent stake in Transitions Optical, while Essilor holds a 49 per cent share. It plans to use proceeds from the deal on acquisitions and share repurchases, which it will resume doing after suspending buybacks earlier this year.

Transitions Optical supplies photochromic lenses and had about $800 million in revenue last year. Essilor designs and makes a range of lenses to improve and protect eyesight.

The companies expect the deal to close in the first half of next year, if regulators approve it.

PPG Industries shares rose $4.06, or 2.6 per cent, to $161.17 in trading Monday after rising as high as $161.48. FactSet said that is an all-time high.