PPG Industries (PPG - Free Report) has wrapped up its earlier announced acquisition of high-temperature-resistant and insulative coatings supplier Hi-Temp Coatings Technology Co., Inc. for an undisclosed price. The Pittsburgh-based coatings giant announced the deal last month.
Boxborough, Mass.-based Hi-Temp is a leading supplier of coatings that protect carbon steel and stainless steel substrates. Coatings supplied by the entity are widely used in refineries, petrochemical plants, pulp and paper mills, and power plants. Hi-Temp’s products include the industry-leading corrosion-under-insulation (CUI) coating – HI-TEMP 1027 – which can be applied while equipment is hot and in operation, thereby reducing facility downtime during maintenance.
The addition of Hi-Temp’s products and technologies strengthens PPG Industries’ protective and marine coatings business by offering a number of growth opportunities, notably in petrochemical space. The integration of Hi-Temp’s CUI coatings with PPG Industries’ legacy products will allow the latter with greater options to address its customers’ needs.
PPG Industries has a diversified business, both in terms of products offered and geographical presence. It is a global leader in protective and marine coatings and has a leading position in several paints and coatings end markets.
PPG Industries is taking steps to grow its business inorganically by making a number of acquisitions. Moreover, the company is pursuing a $102 million business restructuring focused on achieving cost synergies associated with its takeover of Akzo Nobel’s (AKZOY - Free Report) North American architectural coatings business.
However, PPG Industries may continue to face softness in Europe with weak economic activity and a still challenging demand environment. Moreover, it remains exposed to raw material cost pressure and sluggishness across some of its key end markets.
PPG Industries is a Zacks Rank #2 (Buy) stock.
Other companies in the chemical space with favorable Zacks Rank are Northern Technologies International Corp. and The Dow Chemical Co. . While Northern Technologies holds a Zacks Rank #1 (Strong Buy), Dow Chemical is a Zacks Rank #2 (Buy) stock.