PPG Industries Inc.PPG declared that it has wrapped up the acquisition of specific assets of Flood Australia that makes and distributes specialty wood stain and paint additive solutions for household consumers as well as industrial and commercial users.
The acquisition does not involve any manufacturing asset or facility. Financial details of the deal were also not revealed.
According to Michael McGarry, president and chief operating officer of PPG Industries, with this acquisition the company has enhanced its presence and position in the wood care market in Australia by expanding its architectural paint and coatings offering.
Moreover, PPG Industries, which presently manufactures and distributes Flood wood care products in North America, looks forward to serving Australian customers with the same quality products to maintain the Flood brand name. In Australia, products of Flood are distributed at various home improvement stores like Bunnings, Masters, Mitre 10, Danks as well as other independent paint dealers.
PPG Industries is striving to grow its business by expanding its diverse product portfolio along with its geographic presence. The company is pursuing an aggressive cost-cutting and restructuring strategy. It is also taking steps toward growing its business inorganically by making a number of acquisitions.
The company spent $2.5 billion on acquisitions in 2014. It expects to deploy $1.5-$2.5 billion of cash in the 2015-2016 period on acquisitions and share buybacks.
PPG Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the diversified chemical space include Asahi Kasei Corp. AHKSY , Innospec Inc. IOSP and Air Products & Chemicals Inc. APD . While Asahi Kasei and Innospec sport a Zacks Rank #1 (Strong Buy), Air Products carries a Zacks Rank #2 (Buy).
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