PPG bets on growth with latest purchase
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PPG Industries plans to close on the purchase of another coatings business by the end of the year -- the latest in a series of acquisitions designed to boost the segment that the Pittsburgh company considers to be its primary growth engine.
The Downtown-based paints, glass and chemicals maker said Wednesday it has an agreement to buy certain assets of Spraylat Corp., an industrial coatings maker based in Pelham, N.Y. Financial terms were not disclosed.
Privately-held Spraylat generated sales last year of $125 million and employs about 300 people in the U.S., Europe and China. Its coatings are used for auto parts and for industrial applications including electronic devices, metal office furniture and signs.
Industrial coatings sales accounted for $4.1 billion of PPG's $14.9 billion in global revenues in 2011. The company expects strong growth for coatings to continue, particularly with the recent rebound in the automotive industry.
"We're growing much faster than the market," Cynthia Niekamp, senior vice president, automotive coatings, said in an interview with the Post-Gazette last week.
Among the acquisitions PPG has made in the last two years to expand its coatings portfolio are Bairun, a packaging coatings business in southern China; Ducol Coatings South Africa, an importer and distributor of PPG automotive refinish products located near Johannesburg; Dyrup A/S, a producer of architectural coatings and specialty products based in Copenhagen, Denmark; and Colpisa, a coatings manufacturer and distributor based in Colombia, South America.
PPG's largest acquisition ever was the $3.1 billion purchase of SigmaKalon, a Dutch paints maker, from Bain Capital in 2008.
This morning, PPG will report third quarter results, and analysts expect gains in sales and income.
Analysts project that revenues will rise to $3.91 billion from $3.85 billion a year ago and that income will increase to $2.21 a share, up from $1.96 in last year's third quarter.
PPG's shares closed Wednesday at $118.97, up $1.15.
First Published October 18, 2012 12:00 am