PPG Industries Inc.
) North American architectural coatings business has completed the
acquisition of Masterwork Paint Company. Financial terms of the
deal were not disclosed.
Masterwork operates a 13-store network in western Pennsylvania,
Ohio and New York. The addition of Masterwork will strengthen PPG
Industries' company-owned store network, which strive to deliver
consistent and integrated customer experience.
PPG Industries is taking steps to grow its business inorganically
through numerous acquisitions. The acquisition of
) North American architectural coatings business has reinforced its
branded paint product offerings and scale in the North American
architectural paint market.
Moreover, in an effort to strengthen its position in the aerospace
industry, PPG Industries acquired specific assets of the
privately-held specialty coatings company Deft Incorporated, last
year. The recent acquisition of Hi-Temp Coatings Technology also
strengthened PPG Industries' protective and marine coatings
In a major move, PPG Industries recently agreed to buy Mexico's
leading paint company - Consorcio Comex S.A. de C.V. - for $2.3
billion to reinforce its architectural coatings business in Mexico
and Central America. The deal is in sync with the company's
strategy to broaden its global coatings business.
PPG Industries has a diversified base of products and markets, and
is looking for opportunities to grow its businesses strategically
along with implementation of cost controlling strategies. It should
gain from continual strength across the North American automotive
and aerospace market. However, the company remains exposed to
factors like the yet to be recovered European market, raw material
cost pressure and foreign currency headwinds.
PPG Industries is a Zacks Rank #2 (Buy) stock.
Other companies in the chemical space worth considering include
Koninklijke DSM N.V.
). Both carry the same rank as PPG Industries.
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