PPG Completes Sale of Architectural Coatings Business in the U.S. and Canada to American Industrial Partners

PPG announced that it has sold 100% of its architectural coatings business in the United States and Canada for $550 million to American Industrial Partners (AIP), an industrials investor.

PPG's architectural coatings operations in other areas of the globe remain essential to the company's portfolio, including Latin America, Europe, and Asia Pacific, where PPG enjoys strong #1 or #2 positions in a number of significant markets.

"We 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," stated Tim Knavish, PPG chairman and chief executive officer. "This 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."

The architectural coatings business in the United States and Canada accounted for roughly $2 billion of PPG's 2023 total net sales, with an EBITDA margin in the low single digits. As previously mentioned, eliminating this business, PPG's total company sales volume performance would have risen by more than 200 basis points over the course of three years. Furthermore, the company's Performance Coatings segment operational (EBIT) income, excluding the U.S. and Canada architectural coatings EBIT and the corresponding growth-related expenditures, would have resulted in an approximately 300-basis point increase in segment margins in 2023.

The deal is the conclusion of PPG's examination of strategic options for the company, which was first disclosed on February 26, 2024. Goldman Sachs & Co. LLC served as PPG's sole financial adviser, while Hogan Lovells U.S. LLP served as its legal advisor.

Former Architectural Business in United States and Canada

PPG's former architectural coatings business in the United States and Canada is a market leader in residential and commercial architectural coatings, with well-known brands such as GLIDDEN, OLYMPIC, LIQUID NAILS, HOMAX, PITTSBURGH PAINTS & STAINS, Manor Hall, FLOOD, DULUX (in Canada), and SICO. The company produces and distributes interior and exterior paints, stains, caulks, repair materials, adhesives, and sealants to homes and professionals. It also contains certain light-duty protective coatings items that are mostly marketed in company-owned shops and produced on a shared plant footprint.

The transaction included the following Architectural Coatings facilities:

• Manufacturing locations include East Point, Georgia; Oakwood, Georgia; Louisville, Kentucky; Huron, Ohio; Reno, Nevada; Carrollton, Texas; Temple, Texas; Delta, British Columbia (Canada); and Vaughan, Ontario (Canada).

  
  

• Distribution Centers: Huron, Ohio; Oakwood, Georgia; Reno, Nevada; Aurora, Illinois; Flower Mound, Texas; Riverside, California; Reading, Pennsylvania; Carolina, Puerto Rico; Calgary, Alberta; Delta, British Columbia; Toronto, Ontario; and Moncton, New Brunswick (Canada).

  
  

• There are almost 15,000 places of sale in the United States, Canada, and Puerto Rico, including 750 company-owned shops, 6,600 independent dealer locations, and 8,100 big home improvement centers and retailer sites.

  
  

• Leadership and administrative teams have leased headquarters in Cranberry, Pennsylvania, Vaughan, Ontario (Canada), and Boucherville, Quebec.

Source: PPG