PITTSBURGH - PPG Industries Inc. (NYSE:PPG) has initiated a strategic review of its architectural coatings business in the United States and Canada. The company has enlisted Goldman Sachs & Co (NYSE:GS). LLC to assist with the examination of potential alternatives aimed at enhancing growth and shareholder value. This process may explore a range of options, including a potential sale, joint venture, or the maintenance of the business as a core operation within another entity.
The architectural coatings division, part of PPG's performance coatings segment, is recognized for its comprehensive brand portfolio that includes GLIDDEN®, OLYMPIC®, and DULUX® in Canada. The business, which contributes roughly 10% to PPG's net sales, provides a variety of products such as paints, stains, and sealants, distributed across over 15,000 locations including company-owned stores and major retailers in the U.S. and Canada.
PPG Chairman and CEO Tim Knavish highlighted the division's strong market positioning and recent advancements in digital tools, distribution, and product innovation. Despite flat sales volumes in 2023, the company notes that excluding the architectural coatings business, PPG's overall sales volume and segment margins would have seen significant improvements.
The review does not extend to PPG's architectural coatings operations in other regions such as Latin America, Europe, and Asia Pacific, where the company maintains leading market positions.
Approximately 6,600 employees manage the business's manufacturing and distribution across several U.S. states, Puerto Rico, and Canadian provinces. The business's headquarters are in Cranberry, PA, with additional administrative offices in Canada.
PPG plans to discuss this strategic review during a conference call today. However, the company states that the outcome and timing of the review are uncertain and does not guarantee any particular result or transaction. PPG has declared it will not provide further updates on the review's progress until it considers additional disclosure necessary or mandated.
This news is based on a press release statement from PPG.
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