PPG has finalized the sale of its U.S. and Canadian architectural coatings business to American Industrial Partners (AIP) for $550 million. This transaction involves the full divestiture of PPG’s architectural coatings operations in these two countries, while its businesses in other regions such as Latin America, Europe, and Asia Pacific remain core to PPG’s portfolio. The company holds leading positions in many key countries within these regions.

Tim Knavish, PPG’s chairman and CEO, expressed satisfaction with the completion of the transaction, thanking the employees of the U.S. and Canada architectural coatings business for their dedication and hard work. He highlighted that this sale, along with the earlier divestiture of PPG’s silicas products business, is part of the company’s efforts to optimize its portfolio. By focusing on areas with stronger growth potential, PPG aims to enhance its financial performance and growth prospects.

In 2023, the U.S. and Canada architectural coatings business contributed approximately $2 billion to PPG’s total net sales, with a low-single-digit EBITDA margin. The divestiture is expected to result in an improved overall company sales volume, with an anticipated cumulative improvement of over 200 basis points on a 3-year pro forma basis. Additionally, the Performance Coatings segment’s operating income would have seen a 300-basis point improvement in margins, excluding the U.S. and Canada architectural coatings operations and the associated growth investments made in the business.

This sale follows PPG's strategic review of the business, announced on February 26, 2024. Goldman Sachs & Co. LLC acted as the exclusive financial advisor for PPG, while Hogan Lovells U.S. LLP served as the legal advisor for the deal.

PPG’s former architectural coatings business in the U.S. and Canada was a leader in the residential and commercial coatings industry, offering a renowned portfolio of brands such as GLIDDEN®, OLYMPIC®, LIQUID NAILS®, HOMAX®, PITTSBURGH PAINTS & STAINS®, Manor Hall®, FLOOD®, DULUX® (in Canada), and SICO®. The business manufactured and sold a variety of products, including interior and exterior paints, stains, caulks, repair products, adhesives, and sealants, catering to both homeowners and professionals. It also provided select light-duty protective coatings, primarily distributed through company-owned stores and produced at shared facilities.

The transaction included several key Architectural Coatings facilities:

Manufacturing Locations: East Point, Georgia; Oakwood, Georgia; Louisville, Kentucky; Huron, Ohio; Reno, Nevada; Carrollton, Texas; Temple, Texas; Delta, British Columbia (Canada); Vaughan, Ontario (Canada).

Distribution Centers: Huron, Ohio; Oakwood, Georgia; Reno, Nevada; Aurora, Illinois; Flower Mound, Texas; Riverside, California; Reading, Pennsylvania; Carolina, Puerto Rico; Calgary, Alberta (Canada); Delta, British Columbia (Canada); Toronto, Ontario (Canada); Moncton, New Brunswick (Canada).

The business had more than 15,000 points of sale, including 750 company-owned stores, 6,600 independent dealer locations, and 8,100 major home improvement centers and retail locations across the U.S., Canada, and Puerto Rico.

It also had leased headquarters for leadership and administrative teams located in Cranberry, Pennsylvania; Vaughan, Ontario (Canada); and Boucherville, Quebec (Canada).