The North American architectural coatings business unit of
) has taken a minority equity interest in The Coatings Alliance,
LLC (TCA) for an undisclosed price. TCA is a cooperative of 42
paint dealers in the U.S. and Canada.
Pursuant to the agreement, PPG will produce the TCA-owned C2
Paint brand for TCA and also act as an independent sales
representative for C2 Paint to independent paint and decorating
retailers across North America.
PPG Industries' partnership with TCA is a strategic fit for the
company, enabling it to continue expanding its distribution base
in North America while simultaneously reaffirming its commitment
to the independent dealer channel. PPG will also benefit from
including a branded, premium dealer-owned paint - TCA's C2 Paint
- in its existing product options that are offered to the network
of independent retailers.
This is also a beneficial transaction for TCA as it will leverage
PPG's business stature, expertise and global reach with ready
access to its world-class manufacturing, extensive network of
sales representatives with established industry relationships.
The partnership will enable TCA to spend more on research and
development, marketing and distribution so as to ensure C2
Paint's exclusive market position and its commitment to
eco-friendly and more sustainable products.
The Architectural Coatings unit of PPG manufactures paints,
stains and specialty coatings marketed under renowned brands
including CIL, FLOOD, GLIDDEN, LIQUID NAILS, OLYMPIC, PPG
PITTSBURGH PAINTS, PPG PORTER PAINTS to name a few. Its vast
manufacturing and distribution base includes over 800
company-owned stores, over 5,000 independent dealer locations and
all major home improvement centers.
PPG Industries currently carries a Zacks Rank #2 (Buy).
Other companies in the chemical industry worth considering
Cytec Industries Inc.
The Dow Chemical Company
), all three carrying the same Zacks Rank as PPG Industries.
CYTEC INDS INC (CYT): Free Stock Analysis
DOW CHEMICAL (DOW): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
PPG INDS INC (PPG): Free Stock Analysis
To read this article on Zacks.com click here.