PPG to review strategic alternatives for architectural coatings business

PPG announced that it has engaged Goldman Sachs & Co. as financial advisor to assist in a review of strategic alternatives for its architectural coatings business in the U.S. and Canada. PPG‘s architectural coatings business in the U.S. and Canada, which operates within the company’s performance coatings segment, is an industry leader in residential and commercial architectural coatings through its well-known portfolio of brands …The business manufactures and sells interior and exterior paints, stains, caulks, repair products, adhesives, and sealants for homeowners and professionals. It also includes certain light-duty protective coatings products that are primarily sold through company-owned stores and manufactured through a common factory footprint. … PPG Chairman and Chief Executive Officer, Tim Knavish, said, “The architectural coatings business in the U.S. and Canada has a well-established position in a growing market, leading brands, proven innovation, established customers, and dedicated and talented employees. We have made considerable progress over the past several years in modernizing the architectural coatings business model to better position the business for continued success. This has included instituting value-added customer-facing digital tools, revamping our manufacturing and distribution footprint, transitioning towards an asset-light distribution model, and introducing innovative products that enhance customer productivity and sustainability. … “In January, we announced a strategic review of alternatives for our silica products business and are now also conducting a review of our architectural coatings U.S. and Canada business. These actions reflect a regular and disciplined strategic assessment process by our Board and management team, including ensuring each of our businesses delivers value for our customers and shareholders, and aligns with the growth and investment strategies for the company,” said Knavish….The timing and outcome of the strategic review is uncertain. There is no assurance that the review will result in any transaction or other outcome. PPG does not intend to disclose developments or provide updates on the progress or status of the review unless and until it deems further disclosure is appropriate or required.The architectural coatings business’ footprint in the U.S. and Canada includes approximately 750 company owned stores in the U.S. and Canada.