AMERICAN INDUSTRIAL PARTNERS TO ACQUIRE PPG'S ARCHITECTURAL COATINGS BUSINESS IN THE UNITED STATES AND CANADA

Rhea-AI Summary

American Industrial Partners (AIP) has announced an agreement to acquire PPG's architectural coatings business in the U.S. and Canada. The transaction, expected to close in late 2024 or early 2025, involves a business that generated approximately $2 billion in revenue in 2023. The acquired company is a leading producer of paints, stains, and related products, with iconic brands including GLIDDEN®, PITTSBURGH PAINTS & STAINS®, and OLYMPIC®.

The company, headquartered in Cranberry, PA, employs over 6,000 people across the U.S. and Canada, including 750 company-owned stores. It will also serve as the exclusive distributor for PPG's Protective Marine and Coating business segment. AIP aims to leverage the company's growth momentum and industry knowledge to continue business transformation and expand into new markets.

Positive

• Acquisition of a business with $2 billion in revenue (2023)
• Portfolio of well-known, iconic brands in the architectural coatings industry
• Extensive distribution network including 750 company-owned stores
• Exclusive distribution rights for PPG's Protective Marine and Coating business segment
• Potential for market expansion and business transformation

Negative

• None.

News Market Reaction

+0.77%

1 alert

+0.77% News Effect

On the day this news was published, PPG gained 0.77%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Building off strong foundations and iconic legacy brands, investment will enable the Company to accelerate profitable growth across the U.S. and Canada

NEW YORK, Oct. 17, 2024 /PRNewswire/ -- American Industrial Partners ("AIP"), an industrials investor, today announced that American Industrial Partners Capital Fund VIII has entered into a definitive agreement to acquire the U.S. and Canadian architectural coatings business (the "Company") of PPG, (NYSE: PPG), a global paints, coatings, and specialty materials leader.  The transaction is expected to close in late 2024 or early 2025 and is subject to customary closing conditions.

PPG's architectural coatings business in the U.S. and Canada generated 2023 revenue of approximately $2 billion and is a leading producer of interior and exterior paints, stains, caulks, repair products, adhesives, and sealants for homeowners and professionals, as well as certain light-duty protective coatings products, in the United States and Canada.  Its deep, well-known market presence includes some of the industry's most iconic brands: GLIDDEN^®, PITTSBURGH PAINTS & STAINS^®, Manor Hall^®, OLYMPIC^®, LIQUID NAILS^®, HOMAX^®, TRUEFINISH^®, MULCO^®, FLOOD^®, DULUX^® (in Canada), and SICO^®, among others. The Company, through its stores network and dealer relationships, will also serve as the exclusive distributor for PPG's Protective Marine and Coating ("PMC") business segment, including for the distribution of brands such as AMERCOAT^® and AMERLOCK^®.  PPG's architectural business for the U.S. and Canada is headquartered in Cranberry, PA, and employs more than 6,000 employees across its U.S. and Canadian facilities, which includes 750 company-owned stores.

"Our entire team is excited to begin this next chapter for our business and I am confident AIP is the ideal partner for us as we pursue our value creation plans as an independent company.  AIP's strong operational approach and customer focus, combined with its track record and building products expertise, will be highly complementary to our team," said Jaime Irick, Chief Executive Officer of the Company. "Through our efforts to modernize our architectural coatings business model, we have instituted value-added customer-facing digital tools, revamped our manufacturing and distribution footprint, and introduced innovative products that enhance customer productivity and sustainability. Leveraging this growth momentum alongside AIP's industry knowledge will enable us to continue our business transformation and expand to new markets."

"We're thrilled to be acquiring a storied business with a heritage dating back 125 years and look forward to partnering with the management team and employees to deliver best-in-class customer service across product and brand innovations," said Rick Hoffman, Partner at AIP.  "As a longtime leader in residential and commercial architectural paint with some of the industry's most iconic brands, the Company is well-positioned to benefit from growth in both the Pro and DIY consumer categories."

Ropes & Gray LLP served as legal counsel to AIP.

About American Industrial Partners

American Industrial Partners ("AIP") is an industrials investor, with approximately $16 billion in assets under management. AIP is distinctively focused on industrial businesses across a broad range of end markets that include: aerospace and defense, automotive, building products, capital goods, chemicals, industrial services, industrial technology, logistics, metals & mining, and transportation, among others. AIP looks to generate differentiated returns by investing in quality industrial businesses with strong management teams and working with those teams to implement comprehensive operating agendas to build long-term value. Current AIP portfolio companies generate aggregate annual revenues of approximately $25 billion and employ approximately 70,000 employees as of June 30, 2024. www.americanindustrial.com

Contacts:

Media Inquiries: American Industrial Partners – pro-AIP@prosek.com

 

View original content:https://www.prnewswire.com/news-releases/american-industrial-partners-to-acquire-ppgs-architectural-coatings-business-in-the-united-states-and-canada-302279235.html

SOURCE American Industrial Partners

FAQ

What is the value of the PPG architectural coatings business acquisition by AIP?

The press release does not disclose the specific value of the acquisition. However, it mentions that PPG's architectural coatings business in the U.S. and Canada generated approximately $2 billion in revenue in 2023.

When is the PPG architectural coatings business acquisition by AIP expected to close?

The transaction is expected to close in late 2024 or early 2025, subject to customary closing conditions.

How many employees does the PPG architectural coatings business have in the U.S. and Canada?

The company employs more than 6,000 employees across its U.S. and Canadian facilities, including 750 employees in company-owned stores.

What are some of the brands included in the PPG architectural coatings business acquisition?

The acquisition includes iconic brands such as GLIDDEN®, PITTSBURGH PAINTS & STAINS®, OLYMPIC®, LIQUID NAILS®, HOMAX®, DULUX® (in Canada), and SICO®, among others.