) North American architectural coatings business has agreed to buy
decorative wall and ceiling texture repair products supplier - The
Homax Group - for an undisclosed price. The transaction, which is
subject to customary closing conditions, is expected to consummate
in third-quarter 2014.
Homax, a portfolio company of private equity firm Olympus
Partner, is a leading supplier of decorative aerosol drywall and
ceiling texturing applications used mainly for home repair. It also
supplies a number of epoxy finishes, patching, caulking and mesh
tape repair products. The entity distributes its products through
major home improvement centers, hardware stores and paint
The addition of Homax's offerings will strengthen PPG
Industries' architectural coatings product portfolio. The
acquisition complements the company's commitment in offering its
customers with leading coatings and related home remodeling and
PPG Industries is taking steps to grow its business
inorganically by making a number of acquisitions. The acquisition
) 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
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 looks to grow its businesses strategically along with
controlling costs. It should gain from continued strength across
North American automotive and aerospace markets. However, the
company remains exposed to a still soft European market, raw
material cost pressure and currency headwind. .
PPG Industries is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical space worth considering include
Compass Minerals International Inc.
). While Compass Minerals retains a Zacks Rank #1 (Strong Buy),
PetroLogistics sports a Zacks Rank #2 (Buy).
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