PPG Industries Completes Acquisition of Canal Supplies
PPG Industries Inc. (PPG) announced that it has completed the acquisition of Canal Supplies Inc. Based in Panama, Canal Supplies is a privately-owned distributor of protective and marine coatings to customers in Central America. Financial terms of the deal were not disclosed.
PPG Industries had announced in Mar 2014 that it would be acquiring all of the assets of Canal Supplies. The acquisition will enhance PPG Industries’ customer base in Central America and help capitalize on the strong demand for its protective and marine products in this high growth market. PPG Industries is taking steps to grow its business inorganically through numerous acquisitions. In an effort to strengthen its position in the aerospace industry, PPG Industries acquired specific assets of the privately-held specialty coatings company Deft Incorporated last year. The recent acquisition of Hi-Temp Coatings Technology also strengthened PPG Industries’ protective and marine coatings business.
PPG Industries has a diversified base of products and markets, and is looking for opportunities to grow its businesses strategically along with implementation of cost controlling initiatives. It should gain from continual strengthening of the North American automotive and aerospace market. However, the company is exposed to a yet to recover European market, raw material cost pressure and foreign currency headwinds.
PPG Industries is a Zacks Rank #3 (Hold) stock.
Some better-ranked stocks in the chemical space include Compass Minerals International Inc. (CMP), Eastman Chemical Company (EMN) and Koninklijke DSM N.V. (RDSMY). While Compass Minerals sports a Zacks Rank #1 (Strong Buy), Eastman Chemical and Koninklijke DSM have a Zacks Rank #2 (Buy).
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