In a move to broaden its supply network in Central America,
) has agreed to buy substantially all of the assets of
Panama-based Canal Supplies, Inc. for an undisclosed price.
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Canal Supplies distributes protective and marine coatings to
customers in Central America. The transaction, which is subject
to customary closing conditions, is expected to consummate in
The buyout will expand the access of PPG Industries' products to
customers throughout Central America, especially in growth
markets for protective and marine coatings such as Costa Rica and
The Panama Canal is a major regional economic hub for the
protective and marine coatings industry and the acquisition will
enhance PPG Industries' ability to meet growing demand for its
products in the region.
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, it remains exposed to raw material cost
pressure and sluggishness across some of its key end markets.
PPG Industries is a Zacks Rank #2 (Buy) stock.
Other companies in the chemical industry with favorable Zacks
The Dow Chemical Company
). While Methanex holds a Zacks Rank #1 (Strong Buy), Dow carries
a Zacks Rank #2 (Buy).