Paints giant PPG sells business, including Puerto Rico operations
American Industrial Partners is acquiring the company’s U.S. and Canada architectural coatings business.
PPG, a global provider of paints, coatings and specialty materials, announced it has reached a definitive agreement to sell 100% of its architectural coatings business in the U.S. and Canada to American Industrial Partners (AIP), an industrial investor, for a transaction value of $550 million.
PPG said the transaction, which is expected to close in late 2024 or early 2025, is the result of an evaluation of strategic alternatives for the business, which was first announced on Feb. 26.
The deal includes PPG’s distribution center in Carolina and about 25 retail locations across the island.
The company also announced a cost reduction program with anticipated pre-tax savings of approximately $175 million annually once fully implemented, with savings of $60 million expected in 2025.
“We are pleased to reach an agreement with American Industrial Partners and believe the business is well positioned to leverage its current positive momentum, leading brands, proven innovation, established customers, and dedicated and talented employees,” said Tim Knavish, PPG chairman and CEO
PPG’s architectural coatings operations in Latin America, Europe and Asia Pacific, where PPG holds No. 1 or No. 2 positions in several countries, remain core businesses within the company’s portfolio, the company added.
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