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PPG Industries Buys Remaining Interest in IVC Joint Venture
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PPG Industries (PPG - Free Report) said that it has purchased the remaining 50% ownership interest in its Asian joint venture consisting of IVC (Malaysia) Sdn Bhd and IVC-OPS (Singapore) Pte. Ltd. from its joint-venture partner, Omni-Plus System Pte. Ltd. Financial terms of the transaction were not disclosed.
The IVC joint venture, formed in 2008, supplies industrial coatings to the appliance and electronics-materials segments. PPG’s acquisition of the remaining 50% ownership interest in the joint venture include all machinery and equipment, property leases, working capital, customer list and relationships, and distribution and territorial rights in Asia. Also, IVC employees will be absorbed by PPG.
This transaction will enhance PPG’s ability to deliver value to their industrial coatings customers.
PPG Industries’ shares rallied around 9.2% over the past three months outperforming the Zacks categorized Chemicals-Diversified industry’s 6.8% gain.
The company has a diversified business, both in terms of products offered and geographical presence. The company’s strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.
PPG Industries has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120–$130 million in annual savings, with $40–$50 million of savings expected to be realized in 2017.
The company also has an impressive record of returning cash to shareholders through dividends and share buybacks. PPG Industries expects to deploy $2.5–$3.5 billion cash in acquisitions and share repurchases for 2017 and 2018 combined.
PPG Industries is however, exposed to unfavorable currency exchange translation, especially in the emerging markets. The company also continues to face macroeconomic challenges. It sees uneven growth in emerging economies in 2017.
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PPG Industries Buys Remaining Interest in IVC Joint Venture
PPG Industries (PPG - Free Report) said that it has purchased the remaining 50% ownership interest in its Asian joint venture consisting of IVC (Malaysia) Sdn Bhd and IVC-OPS (Singapore) Pte. Ltd. from its joint-venture partner, Omni-Plus System Pte. Ltd. Financial terms of the transaction were not disclosed.
The IVC joint venture, formed in 2008, supplies industrial coatings to the appliance and electronics-materials segments. PPG’s acquisition of the remaining 50% ownership interest in the joint venture include all machinery and equipment, property leases, working capital, customer list and relationships, and distribution and territorial rights in Asia. Also, IVC employees will be absorbed by PPG.
This transaction will enhance PPG’s ability to deliver value to their industrial coatings customers.
PPG Industries’ shares rallied around 9.2% over the past three months outperforming the Zacks categorized Chemicals-Diversified industry’s 6.8% gain.
The company has a diversified business, both in terms of products offered and geographical presence. The company’s strong presence in emerging regions has enabled it to deliver growth to shareholders by tapping opportunities there. PPG Industries is also taking initiatives to expand its business through acquisitions.
PPG Industries has announced certain restructuring measures to lower its cost structure globally. Special emphasis will be put on regions and end-use markets with the weakest business. The restructuring actions are expected to deliver $120–$130 million in annual savings, with $40–$50 million of savings expected to be realized in 2017.
The company also has an impressive record of returning cash to shareholders through dividends and share buybacks. PPG Industries expects to deploy $2.5–$3.5 billion cash in acquisitions and share repurchases for 2017 and 2018 combined.
PPG Industries is however, exposed to unfavorable currency exchange translation, especially in the emerging markets. The company also continues to face macroeconomic challenges. It sees uneven growth in emerging economies in 2017.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. Price and Consensus | PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG Industries currently carries a Zacks Rank #3 (Hold).
Better-ranked companies in the chemical space include Univar Inc. , The Chemours Company (CC - Free Report) and Kronos Worldwide Inc (KRO - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Univar has expected long-term growth of 9.4%.
Chemours has expected long-term growth of 15.5%.
Kronos has expected long-term growth of 5%.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>