) has agreed to buy high-temperature-resistant and insulative
coatings supplier Hi-Temp Coatings Technology Co., Inc. for an
undisclosed price. The transaction, which is subject to customary
closing conditions, is expected to consummate in first-quarter
Boxborough, Mass.-based Hi-Temp is a leading supplier of
coatings that protect carbon steel and stainless steel
substrates. Coatings supplied by the entity are widely used in
refineries, petrochemical plants, pulp and paper mills, and power
plants. Hi-Temp's products include the industry-leading
corrosion-under-insulation (CUI) coating - HI-TEMP 1027 - which
can be applied while equipment is hot and in operation, thereby
reducing facility downtime during maintenance.
The addition of Hi-Temp's products and technologies will
reinforce PPG Industries' protective and marine coatings business
by offering a number of growth opportunities, notably in
petrochemical space. The integration of Hi-Temp's CUI coatings
with PPG Industries' legacy products will allow the latter with
greater options to address its customers' needs.
PPG Industries saw its profit jump in fourth-quarter 2013,
reported on Jan 16, on strength in its coatings business and its
cost management initiatives. Revenues rose by double digits on
healthy momentum across aerospace and automotive markets. PPG
Industries sees favorable market conditions across these
end-markets in 2014.
PPG Industries has a diversified business, both in terms of
products offered and geographical presence. It is a global leader
in protective and marine coatings and has a leading position in
several paints and coatings end markets.
PPG Industries is taking steps to grow its business
inorganically by making a number of acquisitions. Moreover, the
company is pursuing a $102 million business restructuring focused
on achieving cost synergies associated with its takeover of
) North American architectural coatings business.
However, PPG Industries may continue to face softness in
Europe with weak economic activity and a still challenging demand
environment. Moreover, the company remains exposed to raw
material cost pressure and sluggishness across some of its key
PPG Industries is a Zacks Rank #2 (Buy) stock.
Other companies in the chemical industry worth considering
L'Air Liquide SA
Northern Technologies International Corp.
) with both carrying a Zacks Rank #1 (Strong Buy).
AIR LIQUIDE-ADR (AIQUY): Get Free Report
AKZO NOBEL NV (AKZOY): Get Free Report
NORTHERN TECH (NTIC): Free Stock Analysis
PPG INDS INC (PPG): Free Stock Analysis
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