Pittsburgh, February 26, 2024–(BUSINESS WIRE)–PPG (NYSE: PPG), a global leader in paints, coatings and specialty materials, today hired Goldman Sachs & Co. LLC as financial advisor to assist in exploring strategic alternatives. announced. He contributed to the architectural coatings business in the United States and Canada.
PPG's Architectural Coatings business in the United States and Canada operates within the company's High Performance Coatings division and is an industry leader in residential and commercial architectural coatings through a portfolio of well-known brands, including GLIDDEN.®,Olympic®liquid nail®Homax®Pittsburgh Paint and Stain®Manor Hall®flood®dulux® (Canada), SICO®, among others. The company manufactures and sells interior and exterior paints, stains, caulks, refinish products, adhesives and sealants for homeowners and professionals. This also includes certain lightweight protective coating products that are sold primarily in our own stores and manufactured in a common factory footprint.
The distribution network includes more than 15,000 total touchpoints through company-operated stores, independent dealer locations, and major home improvement and retail stores in the U.S. and Canada. In 2023, the U.S. and Canadian architectural coatings business accounted for approximately 10% of PPG's net sales.
“Our U.S. and Canadian architectural coatings business is well-positioned in a growing market, with leading brands, proven innovation, and an established portfolio of customers, and a dedicated and talented workforce, has made significant progress over the past few years in modernizing its architectural coatings business model, creating a better position for the continued success of the business. Our efforts over the past few years include introducing value-added customer-facing digital tools, revamping our manufacturing and distribution footprint, and becoming asset-light. has significantly increased the number of distribution locations for its well-known brands, creating positive momentum for the business. These changes have been recognized. We conducted research within the industry to validate the progress of the business's transformed strategy. Businesses are now poised to accelerate this transformation.
“Given the strong momentum in our business, we are currently reviewing this strategic review with the aim of ensuring the continued growth and success of our business while maximizing value for PPG and its shareholders. “We're going to evaluate whether we can make some or all of the business better.” Some may be better suited to grow faster with a partner or another owner, others may be better suited to grow more quickly with a partner or another owner, or they may be better suited to grow independently as a core business in another company. may be suitable to operate as a separate entity or as a joint venture. Throughout this process, we continue to fully support our businesses, employees, and architectural coatings customers across the U.S. and Canada.
“In January, we announced a strategic review of alternatives for our silica products business, and we are currently also conducting a review of our U.S. and Canadian architectural coatings businesses. “This reflects our regular, disciplined strategic evaluation process to ensure each of our businesses delivers value to our customers and shareholders and is aligned with the company's growth and investment strategies.” said Knavish.
Despite the business achieving flat sales in 2023, on a three-year pro forma basis, PPG's overall corporate sales performance, excluding the U.S. and Canadian architectural coatings business, is cumulatively 200. That's an improvement of more than a basis point. In addition, operating (EBIT) earnings for the company's Performance Coatings segment, excluding U.S. and Canadian architectural coatings EBIT and related growth-related investments, are expected to improve segment margins by approximately 300 basis points in 2023.
The timing and outcome of the strategic review are uncertain. There is no guarantee that any review will result in any transaction or other outcome. PPG does not intend to disclose developments or provide updates on the progress or status of a review unless PPG determines that further disclosure is appropriate or necessary. The strategic review of PPG's architectural coatings business in the United States and Canada includes other areas around the world, including Latin America, Europe, and Asia Pacific, where PPG maintains its No. 1 or No. 2 global position. Architectural coatings business in the region is not included. Number of major countries.
Our U.S. and Canadian architectural coatings operations are led by approximately 6,600 employees and manufacture and sell products through dedicated facilities:
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Manufacturing: East Point, GA; Oakwood, GA; Louisville, KY. Huron, Ohio; Reno, Nevada. Carrollton, Texas. Temple, Texas. Delta, British Columbia (Canada); and Vaughan, Ontario (Canada).
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distribution: Huron, Ohio; Oakwood, Georgia; Reno, Nevada. Aurora, Illinois. Flower Mound, Texas. Riverside, California. Reading, Pennsylvania. PR Carolina (Puerto Rico); Calgary, Alberta (Canada); Delta, British Columbia (Canada); Toronto, Ontario (Canada); and Moncton, New Brunswick (Canada).
Our architectural coatings operations in the United States and Canada include approximately 750 company-owned stores in the United States (including Puerto Rico) and Canada.
In addition, our corporate headquarters are located in Cranberry, Pennsylvania, which includes our business leadership and management teams. The company also has offices in Vaughan, Ontario (Canada) and Boucherville, Quebec (Canada), which include additional management teams.
The company will hold a conference call today, February 26th at 9:00 a.m. ET to discuss a strategic review of its U.S. and Canadian architectural coatings business. Attendees can pre-register for the conference by going to https://www.netroadshow.com/events/login?show=d5d8bf31&confId=61593. This conference call will also be available in listen-only mode via Internet broadcast from the PPG Investor Center (www.ppg.com). Telephone replays will be available from approximately 11:00 AM ET on February 27th until 11:59 PM ET on March 11th. The dial-in number for replay is: 1-833-470-1428 in the US. Canada, 1-226-828-7575; United Kingdom, (local) 20-8068-2558; International, +44-20-8068-2558; Passcode 947016. A web replay will also be available immediately following the call on the PPG Investor Center (www.ppg.com) and will continue through Wednesday, February 26, 2025.
PPG: We protect and make the world beautiful®
At PPG (NYSE:PPG), we are committed to developing and delivering the paints, coatings and specialty materials customers have trusted for more than 140 years. Through dedication and creativity, we solve our customers' biggest challenges and work closely with them to find the right path forward. Headquartered in Pittsburgh, the company operates and innovates in more than 70 countries and has reported 2023 net sales of $18.2 billion. The company serves customers in the construction, consumer products, industrial and transportation markets, and aftermarket. For more information, please visit www.ppg.com.
of PPG logo, we protect and beautify the world is a registered trademark of PPG Industries Ohio, Inc.
Forward-looking statements
Statements contained in this press release regarding matters that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. statements regarding the future performance of PPG's architectural coatings business and the potential consequences of considering strategic alternatives for the business; Forward-looking statements can be identified by the fact that they do not relate strictly to current or historical fact. Forward-looking statements include words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “predicts,” “outlooks,” and “projects” that indicate future events. Identified by the use of words. And trends. Many factors could cause actual results to differ materially from the forward-looking statements contained herein. Such factors include the potential consequences of considering strategic alternatives for the business; the timing of the transaction and whether the transaction is entered into or completed; Terms, structure, benefits and costs of any transaction. the risk that the review and its announcement could adversely affect the architectural coatings business and his PPG results; the risk that the review could divert the attention and time of his PPG management; the risk of incurring unexpected costs or expenses as a result of the review; the risks of litigation related to the review and the risks and uncertainties described in our Annual Report on Form 10-K for the year ended December 31, 2023 and future filings with the Securities and Exchange Commission; risks and uncertainties described in our reports from time to time. Factors not listed may create additional material obstacles to the realization of forward-looking statements.
All information in this press release speaks only as of February 26, 2024, and we do not intend to distribute this release after that date, and we do not intend to update or confirm such information. is not interpreted. PPG undertakes no obligation to update any forward-looking statements, except as otherwise required by applicable law.
Category Corporate
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