PPG industries Inc.
) North American architectural coatings business has agreed to buy
Masterwork, an independent paint distributor also based in
Pittsburgh. The deal is expected to close in the third quarter.
However, financial terms of the agreement 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 stores network. The PPG-owned stores
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
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 #3 (Hold) stock.
Some better ranked stocks in the chemical space include
Compass Minerals International Inc.
Eastman Chemical Co.
). While Compass Minerals has a Zacks Rank #1 (Strong Buy), Eastman
Chemical sports a Zacks Rank #2 (Buy).
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