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PPG Closes Stake Buy in Le Joint Francais Sealants Business

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PPG IndustriesPPG has wrapped up its acquisition of a majority stake in the aerospace and automotive sealants businesses of France-based sealants and adhesives products supplier, Le Joint Francais ("LJF"). Financial terms of the transaction were not divulged.

PPG Industries had submitted an offer to buy the stake in Jan 2015. LJF's aerospace and automotive sealants businesses have been spun off to form a new, separate entity with PPG holding a majority interest in the entity. The new joint venture, which is called Sealants Europe SAS, employs over 200 people and will continue to operate in Bezons, France.

LJF, which supplies its products for the aerospace and automotive industries, has been a licensee of PPG's aerospace sealant technology for more than 60 years. It is subsidiary of the Hutchinson Group, a global leader in sealing systems, vibration, acoustic and thermal insulation, fluid transfer systems, transmission and mobility.

The stake purchase allows PPG to cater its aerospace and automotive clients with broader geographic reach and a vast spectrum of automotive products.

Separately, PPG disclosed that it has completed the buyout of the remaining interest in Chemfil Canada Limited, a joint venture between PPG and Madinal Enterprises. Chemfil Canada makes pretreatment products and certain general industrial chemicals for automotive original equipment manufacturers (OEMs) and industrial customers in Canada.

The acquisition boosts PPG's pretreatment offering and services for automotive OEMs as well as industrial customers in Canada. The products and services that have been acquired through the transaction will be offered under the PPG moniker.

PPG Industries has a diversified business and is looking for opportunities to grow its businesses strategically while controlling costs. However, the company is exposed to currency headwinds and sluggishness across some of its end-markets.

PPG Industries currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks in the chemical space include Koppers Holdings Inc. KOP , Celanese Corporation CE and Air Products & Chemicals Inc. APD . While Koppers sports a Zacks Rank #1 (Strong Buy), both Celanese and Air Products hold a Zacks Rank #2 (Buy).

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KOPPERS HOLDNGS (KOP): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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