PPG Industries, Inc. ( PPG Quick Quote PPG - Free Report) announced its definitive agreement to acquire Worwag, a global manufacturer of coatings for industrial and automotive applications. The deal is expected to be completed in the first half of the current year, subject to customary closing conditions.
Worwag specializes in developing sustainable liquid, powder and film coatings and has its operations spread across Germany, the United States, China, South Africa, Mexico, Spain, Switzerland and Poland. It is a family-owned company headquartered in Stuttgart, Germany. Founded in 1918, the company employs around 1,100 people worldwide. The annual revenues for 2020 are expected to be roughly 220 million euros.
Worwag’s expertise in powder and liquid coatings for industrial and automotive applications complements PPG Industries’ business and will enable it to expand its product portfolio. The inclusion of Worwag will boost PPG Industries’ waterborne, direct-to-metal, liquid and powder coatings offerings and help expand current customer distribution in key geographies.
Shares of PPG Industries have gained 15.6% in the past year compared with 22.9% 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.
The company also agreed to purchase Tikkurila, which will expand its portfolio as well as provide customers with a wider range of paint and coatings options.PPG Industries is also buying coatings manufacturer, Versaflex, which is anticipated to support its commitment toward broadening its technology portfolio and customer touch points.
PPG Industries is also actively managing costs amid the corona virus 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 are
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 73.5% for the current fiscal. The company’s shares have surged around 159% 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 49.16% for the current fiscal. The company’s shares have gained around 30.2% 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 30.6% in the past year. It currently sports a Zacks Rank #1.
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