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PPG explores strategic alternatives for architectural coatings business in US, Canada

Published 02/26/2024, 07:14 AM
Updated 02/26/2024, 11:43 AM
© Reuters.
PPG
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(Reuters) -Paints and coatings maker PPG said on Monday it would review strategic alternatives for its architectural coatings business in the United States and Canada.

The announcement comes less than two months after the company said it was reviewing alternatives for its silica products business.

PPG's architectural coatings business manufactures and sells interior and exterior paints, stains, caulks, repair products, adhesives, and sealants through brands such as Dulux, Glidden, Olympic and Liquid Nails.

"We are exploring this strategic review now given the positive momentum in the business. 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," said CEO Tim Knavish.

PPG, however, said the timing and outcome of the strategic review was uncertain.

Morningstar analyst Spencer Liberman said the decision was "likely due to PPG believing they can earn stronger returns with higher growth outside of that market now".

The company has closed many of its stores in the United States and Canada in the last few years as it moved away from competing directly with Sherwin-Williams (NYSE:SHW) and likely wants to focus on areas where it has stronger competitive advantage, Liberman added.

In 2023, the architectural coatings business in the U.S. and Canada represented about 10% of PPG's total net sales.

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