Pittsburgh-based PPG recently hired Goldman Sachs & Co. to serve as financial advisor for a review of strategic alternatives for PPG’s architectural coatings business in the United States and Canada.
The architectural coatings business operates within the company’s performance coatings segment and manufactures and sells adhesives, caulks, certain light-duty protective coatings, interior and exterior paints, repair products, sealants, and stains.
The business was approximately 10 percent of PPG’s total net sales last year, and its distribution network includes more than 15,000 company-owned stores, independent dealer locations, and major home improvement centers and retailers.
“We are exploring this strategic review now given the positive momentum in the business, with the intent of ensuring its continued growth and success while also maximizing the value for PPG and its shareholders,” Tim Knavish, PPG chairman and CEO, said. “We will assess whether some or all of the business could be better suited to grow faster with a partner or different owner, or may be better suited to operate as a core business within another company, as a standalone entity, or in a joint venture. Our review will help to determine if any of these alternative structures will provide the business with more speed and accelerated growth capability. Throughout this process, we will continue to fully support the business, our employees, and our architectural coatings customers throughout the U.S. and Canada.”