Coatings giant PPG Industries Inc. (NYSE:PPG) has inked a 20-year deal with Pittsburgh Penguins to acquire naming rights for Pittsburgh’s multipurpose arena with immediate effect. The facility which was earlier known as “CONSOL Energy (NYSE:CNX) Center,” will now be named “PPG PAINTS Arena.” PPG Industries also becomes the official paint supplier of the Pittsburgh Penguins. The financial terms of the agreement were not divulged.
PPG PAINTS Arena provides a unique platform for PPG Industries to feature the company’s paint and coatings products. The partnership allows PPG Industries to highlight its consumer products, including the PPG Paints, Glidden, Olympic paint and stain, and Pittsburgh Paints & Stains brands, to home-improvement consumers and paint professionals.
The PPG PAINTS Arena logo, which will appear throughout the exterior of the building, will be installed at center ice and on dasher boards around the playing surface along with the signage throughout the interior of the building and all materials in the building. The company will also have a presence at the UPMC Lemieux Sports Complex in Cranberry Township, PA, the main practice and training facility for the Pittsburgh Penguins as well as a comprehensive outpatient facility for UPMC Sports Medicine. The facility is located near PPG’s headquarters for its architectural coatings business across the U.S., Canada and Puerto Rico.
PPG Industries’ products already have a presence in PPG PAINTS Arena. The company has also consulted the Penguins as they chose paint colors used throughout the arena. The company’s paint products were used in both decorative and protective applications throughout the arena when it was built. It is also planning a number of engagement initiatives, including providing PPG Paints product coupons and promotions for its paint products as well as Pittsburgh Penguins tickets and gear giveaways.
PPG PAINTS Arena is a regional venue hosting world-class concerts, family shows and a variety of other events, as well as housing the Pittsburgh Penguins organization and serving as home ice for the NHL team.
PPG Industries remains committed to deliver higher organic growth, including continued commercialization of its innovative, industry-leading coatings technologies. The company has reaffirmed its plans to deploy $2–$2.5 billion cash over 2015–2016 toward acquisitions and share repurchases, and has already spent $1.6 billion toward the same. The company looks to expedite cash deployment in the second half of 2016 and anticipates spending close to the upper end of the guidance.
However, PPG Industries is exposed to significant currency headwind. Moreover, the company faces macroeconomic challenges and some of its end-markets including heavy-duty equipment and marine still remain sluggish.
PPG Industries currently has a Zacks Rank #4 (Sell).
Stocks to Consider
Some better-ranked stocks in the chemical space include Innophos Holdings Inc. (NASDAQ:IPHS) , Olin Corp. (NYSE:OLN) and The Chemours Company (NYSE:CC) .
Innophos Holdings has an expected earnings growth of 48.6% for the current year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olin also sports a Zacks Rank #1 and has an expected earnings growth of around 46% for the current year.
Chemours is a Zacks Rank #1 stock with an expected earnings growth of 20.3% for the current year.
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