PPG Industries’ (PPG) North American architectural coatings business has wrapped up the acquisition of decorative wall and ceiling texture repair products supplier – The Homax Group – for an undisclosed price. The deal was announced last month.
Homax, a portfolio company of private equity firm Olympus Partner, is a leading supplier of decorative aerosol drywall and ceiling texturing applications used mainly for home repair. It also supplies a number of epoxy finishes, patching, caulking and mesh tape repair products. The entity distributes its products through major home improvement centers, hardware stores and paint suppliers.
The addition of Homax’s offerings reinforces PPG Industries’ architectural coatings product portfolio. The acquisition complements the company’s commitment in offering its customers with leading coatings and related home remodeling and repair products.
PPG Industries remains focused on growing its business inorganically through a number of acquisitions. The buyout of Akzo Nobel’s (AKZOY) North American architectural coatings business – the second-largest acquisition in the company’s history – has expanded its branded paint product offerings and scale in the North American architectural paint market, which is expected to benefit from a recovery in the construction market.
Moreover, in a major move, PPG Industries recently agreed to buy Mexico’s leading paint company – Consorcio Comex S.A. de C.V. – for $2.3 billion. The acquisition will bolster its architectural coatings business in Mexico and Central America.
PPG Industries has a diversified base of products and markets, and looks to grow its businesses strategically along with controlling costs. It should gain from continued strength across North American automotive and aerospace markets. However, the company remains exposed to a still soft European market, raw material cost pressure and currency headwind. .
PPG Industries is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical space worth considering are Celanese Corporation (CE) and Koninklijke DSM N.V. (RDSMY) with both carrying a Zacks Rank #2 (Buy).
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