{"id":791611,"date":"2024-12-02T13:39:07","date_gmt":"2024-12-02T18:39:07","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ppg-completes-sale-of-architectural-coatings-u-s-and-canada-business-to-american-industrial-partners\/"},"modified":"2024-12-02T13:39:07","modified_gmt":"2024-12-02T18:39:07","slug":"ppg-completes-sale-of-architectural-coatings-u-s-and-canada-business-to-american-industrial-partners","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ppg-completes-sale-of-architectural-coatings-u-s-and-canada-business-to-american-industrial-partners\/","title":{"rendered":"PPG completes sale of architectural coatings U.S. and Canada business to American Industrial Partners"},"content":{"rendered":"

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PPG completes sale of architectural coatings U.S. and Canada business to American Industrial Partners<\/b><\/p>\n

PITTSBURGH–(BUSINESS WIRE<\/a>)–
\nPPG (NYSE: PPG) today announced that it has completed the sale of 100% of its architectural coatings business in the U.S. and Canada at a transaction value of $550 million to American Industrial Partners (AIP), an industrials investor.<\/p>\n

\nPPG\u2019s architectural coatings businesses in other regions around the world remain core businesses within the company\u2019s portfolio, including in Latin America, Europe and Asia Pacific, where PPG holds strong #1 or #2 positions in a number of key countries.<\/p>\n

\n\u201cWe are pleased to complete this transaction with American Industrial Partners,and I want to thank the architectural coatings U.S. and Canada employees for their dedication and commitment to the business and to PPG customers throughout the years,\u201d said Tim Knavish, PPG chairman and chief executive officer. \u201cThis transaction, along with the completed sale of our silicas products business, further optimizes our portfolio by improving our organic growth and financial return profiles and will result in increased capability to channel our growth resources to areas where we have the strongest right to win with our customers.\u201d<\/p>\n

\nThe architectural coatings business in the U.S. and Canada represented approximately $2 billion of PPG\u2019s 2023 total net sales, with low-single-digit EBITDA margin. As previously stated, on a 3-year pro forma basis PPG\u2019s overall company sales volume results would have improved cumulatively by over 200 basis points excluding this business. Also, the company\u2019s Performance Coatings segment operating (EBIT) income, excluding the U.S. and Canada architectural coatings EBIT and the associated growth-related investments we have made, would have resulted in an approximately 300-basis point improvement in segment margins in 2023.<\/p>\n

\nThe transaction is the result of PPG\u2019s evaluation of strategic alternatives for the business, which was first announced on February 26, 2024. Goldman Sachs & Co. LLC acted as PPG\u2019s exclusive financial advisor and Hogan Lovells U.S. LLP served as its legal advisor.<\/p>\n

About PPG\u2019s former architectural business in the U.S. and Canada:<\/b><\/p>\n

\nPPG\u2019s former architectural coatings business in the U.S. and Canada is an industry leader in residential and commercial architectural coatings through its well-known portfolio of brands, including GLIDDEN\u00ae<\/sup>, OLYMPIC\u00ae<\/sup>, LIQUID NAILS\u00ae<\/sup>, HOMAX\u00ae<\/sup>, PITTSBURGH PAINTS & STAINS\u00ae<\/sup>, Manor Hall\u00ae<\/sup>, FLOOD\u00ae<\/sup>, DULUX\u00ae <\/sup>(in Canada), and SICO\u00ae<\/sup>, among others. The business manufactures and sells interior and exterior paints, stains, caulks, repair products, adhesives, and sealants for homeowners and professionals. It also includes certain light-duty protective coatings products that are primarily sold through company-owned stores and manufactured through a common factory footprint.<\/p>\n

\nThe transaction included the following Architectural Coatings facilities:<\/p>\n