PPG Industries has finalized the sale of its architectural coatings business in the U.S. and Canada to American Industrial Partners (AIP; New York) for $550 million. The divestment follows PPG’s October announcement and a strategic review initiated in February.

Despite this sale, PPG affirmed its commitment to architectural coatings in other regions, including Latin America, Europe, and Asia Pacific, where it holds leading positions in key markets.

“This transaction, alongside the sale of our silicas products business, further streamlines our portfolio, enhancing organic growth and financial performance,” said Tim Knavish, PPG chairman and CEO. “It also enables us to focus resources on areas with the strongest competitive advantages.”

The U.S. and Canada architectural coatings business contributed approximately $2 billion in 2023 net sales, with a low-single-digit EBITDA margin. AIP has rebranded the business as The Pittsburgh Paints Company and appointed Jaime Irick as CEO. Irick, formerly PPG’s senior vice president of architectural coatings, will oversee the business, which includes manufacturing plants in nine locations across the U.S. and Canada, distribution centers, and 750 company-owned stores.

PPG expects to record a pre-tax loss of about $300 million in Q4 2024 from the sale, reflecting foreign currency losses and goodwill impairment. Last week, PPG also completed the sale of its silicas products business to Qemetica (Warsaw), a specialty chemicals manufacturer.

Source: PPG