Following the silica business, PPG sells the architectural coatings business in the United States and Canada for $550 million

PPG has completed the sale of 100% of its architectural coatings business in the United States and Canada to industrial investor American Industrial Partners (AIP) for $550 million. PPG's architectural coatings business in other parts of the world remains a core business in the company's portfolio, including Latin America, Europe and Asia Pacific, where PPG has a leading position in many major countries.

"We are pleased to complete this transaction with American Industrial Partners, and I would like to thank the architectural coatings employees in the United States and Canada for their dedication and commitment to the business and PPG customers over the years," said Tim Knavish, chairman and CEO of PPG. "This transaction, along with the completed sale of our silica products business, further optimizes our portfolio by improving our organic growth and financial return profile and directing growth resources to areas where we are best positioned to win customer favor."

PPG's architectural coatings business in the United States and Canada will have total net sales of $2 billion in 2023 and low single-digit EBITDA margins. As previously announced, excluding this business, PPG's overall company volume results will improve cumulatively by more than 200 basis points on a 3-year forecast basis. In addition, the company's performance coatings segment operating profit (EBIT), excluding U.S. and Canadian architectural coatings EBIT and related growth investments, improves segment margins by approximately 300 basis points in 2023.

The transaction is the result of PPG's evaluation of strategic alternatives for the business, which was first announced on February 26, 2024. Goldman Sachs & Co. served as exclusive financial advisor to PPG and Hogan Lovells US LLP served as its legal advisor. The transaction includes 3 office centers, 9 manufacturing facilities, and 12 distribution centers.

About PPG’s former architectural business in the U.S. and Canada:
PPG’s former architectural coatings business in the U.S. and Canada is an industry leader in residential and commercial architectural coatings with a portfolio of well-known brands, including GLIDDEN®, OLYMPIC®, LIQUID NAILS®, HOMAX®, PITTSBURGH PAINTS & STAINS®, Manor Hall®, FLOOD®, DULUX® (Canada) and SICO®. The business manufactures and markets interior and exterior paints, stains, caulks, repair products, adhesives and sealants for homeowners and professionals. It also includes certain lightweight protective coatings products that are sold primarily through company-owned stores and manufactured at shared facilities.