PPG Industries Inc. (PPG) has announced that it is currently under negotiations with the AXSON Group to acquire REVOCOAT, a global supplier of sealants, adhesives and damper products for the automotive industry.. The company expects to wrap up the transaction in the first quarter of 2015, subject to regulatory approvals and other customary closing conditions. Financial terms of the agreement remain undisclosed.
REVOCOAT, a France-based company, with more than 500 employees, operates seven manufacturing facilities and one research and development center. It is part of the AXSON Group, a leading polymer formulation manufacturer.
This acquisition would further strengthen PPG Industries’ foothold in the specialty materials and automotive market. Moreover, this buyout adequately complements PPG Industries’ core automotive original equipment manufacturer (“OEM”) coatings business.
Additionally, over the past six years, REVOCOAT has grown to command a strong global presence in the automotive OEM adhesives and sealants market. Now PPG Industries’ automotive OEM coatings head will help boost REVOCOAT’s business, offering growth opportunities to its employees and a broad product portfolio to its customers.
PPG Industries is taking steps to grow its business inorganically by making a series of acquisitions. The professional expertise of the REVOCOAT team, along with PPG Industries’ wide market reach, will help the latter to serve its customers with better products, thus driving business growth.
PPG Industries currently has a Zacks Rank #3 (Hold).
Better-ranked companies worth considering in the chemical industry include Innospec Inc. (IOSP), Valhi, Inc. (VHI) and Celanese Corporation (CE). While Innospec and Valhi sport a Zacks Rank #1 (Strong Buy), Celanese carries a Zacks Rank #2 (Buy).
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