PPG Plans to Sell or Spin off Its Silica Business

On January 9, PPG, a global leader in coatings and specialty materials, announced that it has hired Morgan Stanley LLC as a financial advisor to assist in reviewing strategic options for its silica products business. PPG's Silica Products business unit, part of PPG's Specialty Coatings and Materials strategic business unit, produces and supplies precipitated silica products as performance-enhancing additives to major manufacturers around the world. In 2023, the silica products business accounted for 1-2% of PPG's total net sales.

Tim Knavish, PPG chairman and chief executive officer, said: "We are exploring strategic options for our silica products business to maximize value creation for shareholders and ensure its continued success. The company has a strong position, proven innovation capabilities, leading proprietary products and dedicated and talented employees in the growing markets. However, given the business's unique product portfolio, customer base and operating characteristics, we believe it may be better suited as a core business of another company or operated as a standalone entity. We will continue to fully support the business throughout this process and remain committed to providing high-quality products and services to our silicon customers. "

"As we have always done, we will continue to conduct ongoing strategic reviews of all businesses to ensure that each business continues to deliver enhanced value to our customers and shareholders and is consistent with the company’s growth and investment strategy." Knavish added.

PPG expects to complete its review of strategic alternatives by mid-2024. There is no guarantee that the review will result in any trading or other results. PPG does not intend to disclose or provide updated information on the progress or status of the review unless necessary.