PPG Industries Inc. ( PPG Quick Quote PPG - Free Report) announced a definitive agreement to acquire coatings manufacturer, Versaflex. A portfolio company of DalFort Capital Partners, Versaflex specializes in coatings for water and waste water infrastructure, flooring, transportation infrastructure, and industrial applications.
The deal is expected to be completed in the first quarter of 2021, subject to customary closing conditions.
Versaflex is an aggregation of four U.S.-based coatings companies, with roughly 130 employees and expected annual revenues of around $70 million in 2020. It has three manufacturing sites in Kansas, Oklahoma and Washington.
This acquisition is anticipated to support PPG Industries’ commitment toward broadening its technology portfolio and customer touchpoints. VersaFlex’s strong growth outlook, segment mix, product portfolio, as well as manufacturing expertise are expected to complement and expand PPG Industries’ current product offering.
Shares of PPG Industries have gained 10.3% in the past year compared with 13.1% rise of the
PPG Industries is committed to grow business through strategic acquisitions.The company recently acquired Ennis-Flint, a global manufacturer of coatings. The acquisition helps PPG Industries expand its product portfolio and broaden opportunities in rapidly developing and high-growth mobility technology solutions.
PPG Industries is also actively managing costs amid the coronavirus pandemic. The company expects to generate restructuring savings of $30-$35 million for the last quarter of 2020.
Zacks Rank & Other Key Picks
PPG Industries currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space include
Fortescue Metals Group Limited ( FSUGY Quick Quote FSUGY - Free Report) , BHP Group ( BHP Quick Quote BHP - Free Report) and Impala Platinum Holdings Limited ( IMPUY Quick Quote IMPUY - Free Report) .
Fortescue has a projected earnings growth rate of 53.6% for the current fiscal. The company’s shares have surged 157.3% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here
BHP has an expected earnings growth rate of 43.3% for the current fiscal. The company’s shares have gained around 23.6% in the past year. It currently flaunts a Zacks Rank #1.
Impala has an expected earnings growth rate of 131.7% for the current fiscal. The company’s shares have surged around 43.7% in the past year. It currently sports a Zacks Rank #1.
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