The North American architectural coatings business unit of PPG Industries (PPG) has taken a minority equity interest in The Coatings Alliance, LLC (:TCA) for an undisclosed price. TCA is a cooperative of 42 paint dealers in the U.S. and Canada.
Pursuant to the agreement, PPG will produce the TCA-owned C2 Paint brand for TCA and also act as an independent sales representative for C2 Paint to independent paint and decorating retailers across North America.
PPG Industries’ partnership with TCA is a strategic fit for the company, enabling it to continue expanding its distribution base in North America while simultaneously reaffirming its commitment to the independent dealer channel. PPG will also benefit from including a branded, premium dealer-owned paint – TCA’s C2 Paint – in its existing product options that are offered to the network of independent retailers.
This is also a beneficial transaction for TCA as it will leverage PPG’s business stature, expertise and global reach with ready access to its world-class manufacturing, extensive network of sales representatives with established industry relationships.
The partnership will enable TCA to spend more on research and development, marketing and distribution so as to ensure C2 Paint’s exclusive market position and its commitment to eco-friendly and more sustainable products.
The Architectural Coatings unit of PPG manufactures paints, stains and specialty coatings marketed under renowned brands including CIL, FLOOD, GLIDDEN, LIQUID NAILS, OLYMPIC, PPG PITTSBURGH PAINTS, PPG PORTER PAINTS to name a few. Its vast manufacturing and distribution base includes over 800 company-owned stores, over 5,000 independent dealer locations and all major home improvement centers.
PPG Industries currently carries a Zacks Rank #2 (Buy).
Other companies in the chemical industry worth considering include Methanex Corp. (MEOH), Cytec Industries Inc. (CYT) and The Dow Chemical Company (DOW), all three carrying the same Zacks Rank as PPG Industries.