PITTSBURGH — PPG announced Thursday it has agreed to sell its architectural coatings business in the Untied States and Canada for $550 million.
The paint company said the business will be sold to American Industrial Partners, an industrials investor.
The sale is the result of PPG’s evaluation of strategic alternatives for the business, which was first announced on Feb. 26, 2024.
“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 chief executive officer. “I want to thank the architectural coatings U.S. and Canada employees for their dedication and commitment throughout the years to deliver the quality products and services that meet our customers’ evolving needs.”
“From a PPG perspective, this transaction, along with the pending sale of our silicas products business, demonstrates the active portfolio management by the company and our Board. These divestitures further optimize 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,” Knavish said.
The company will be implementing a comprehensive cost reduction program, which will be focused on reducing structural costs primarily in Europe and in certain other global businesses, along with other corporate costs following the two recently announced agreements to sell PPG’s silicas products business and the architectural coatings business in the U.S. and Canada.
The program includes various facility closures and other targeted fixed costs. It will impact about 1,800 positions primarily in the U.S. and Europe.
“In addition, we are taking decisive self-help actions to reduce our overall cost structure. While these decisions are difficult, they are necessary to adjust our fixed cost base and to right-size our company following these two business divestitures. None of these actions will impact our ongoing investments or focus on organic growth,” Knavish said.
For more information and which facilities are affected by the sale, click here.
Download the FREE WPXI News app for breaking news alerts.
Follow Channel 11 News on Facebook and Twitter. | Watch WPXI NOW