PPG announced the completion of the sale of its architectural coatings business in the U.S. and Canada to American Industrial Partners (AIP) for a transaction value of $550 million. This divestiture was the result of PPG’s strategic evaluation of alternatives for the business, first announced on February 26, 2024.
The divested business represented approximately $2 billion of PPG’s total net sales in 2023 and operated with a low-single-digit EBITDA margin. PPG's architectural coatings businesses in other global regions, including Latin America, Europe, and Asia Pacific, remain core to the company's portfolio.
PPG stated that, on a three-year pro forma basis, excluding this business would have improved the company's overall sales volume results cumulatively by over 200 basis points. Furthermore, the Performance Coatings segment operating (EBIT) income would have seen an approximately 300-basis point improvement in segment margins in 2023, underscoring the strategic rationale for the sale.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.