Coatings giant PPG industries Inc.’s (PPG - Free Report) North American architectural coatings business has agreed to buy Masterwork, an independent paint distributor also based in Pittsburgh. The deal is expected to close in the third quarter. However, financial terms of the agreement were not disclosed.
Masterwork operates a 13-store network in western Pennsylvania, Ohio and New York. The addition of Masterwork will strengthen PPG Industries’ company-owned stores network. The PPG-owned stores strive to deliver consistent and integrated customer experience.
PPG Industries is taking steps to grow its business inorganically through numerous acquisitions. The acquisition of Akzo Nobel’s (AKZOY - Free Report) North American architectural coatings business has reinforced its branded paint product offerings and scale in the North American architectural paint market.
Moreover, 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 strategies. It should gain from continual strength across the North American automotive and aerospace market. However, the company remains exposed to factors like the yet to be recovered 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 - Free Report) and Eastman Chemical Co. (EMN - Free Report) . While Compass Minerals has a Zacks Rank #1 (Strong Buy), Eastman Chemical sports a Zacks Rank #2 (Buy).