PPG to Sell Key U.S. and Canadian Business as Part of Strategic Shift
PPG, a global leader in paints, coatings, and specialty materials, announced today that it has reached a definitive agreement to sell 100% of its architectural coatings business in the U.S. and Canada. The transaction, valued at $550 million, involves the sale to American Industrial Partners (AIP), an industrials-focused investor. The deal is expected to close in late 2024 or early 2025, subject to customary closing conditions.
In addition to this sale, PPG announced a comprehensive cost-reduction program designed to generate annualized pre-tax savings of approximately $175 million. This multi-year program, expected to save $60 million in 2025 alone, will focus on reducing structural costs in Europe and other global businesses. The program includes the closure of several facilities and will affect approximately 1,800 positions, primarily in Europe and the U.S.
“We are pleased to have reached this agreement and believe the business is well positioned to build on its positive momentum,” said Tim Knavish, PPG chairman and chief executive officer. “From a PPG perspective, this transaction and our ongoing cost reduction efforts demonstrate our commitment to portfolio optimization and operational efficiency.”
PPG’s architectural coatings business in the U.S. and Canada generated around $2 billion in net sales in 2023. The sale will further streamline the company’s operations and position it for improved financial performance and growth.
For more details on the transaction and PPG’s restructuring efforts, visit PPG’s website.
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