PPG Industries Inc. PPG has inked a deal to buy Avon, MA-based Cuming Microwave Corporation and its fully-owned subsidiary Cuming-Lehman Chambers, Inc., based in Chambersburg, PA. The company did not disclose the financial terms of the transaction.
With the acquisition of Cuming Microwave, PPG will be able to utilize the former’s technologies to further enhance its portfolio of products for the military and aerospace segments. PPG Industries expects to close the deal in the third quarter.
Cuming Microwave runs three manufacturing facilities in Avon and maintains an office in Chambersburg. The company globally supplies specialty coatings and materials that absorb microwaves and radio waves, such as radar. Its products are used in military aircraft and have applications in electronics, telecommunications, medical and automotive.
Recently, PPG Industries further expanded its foothold in Central America with the purchase of Consorcio Latinoamericano for an undisclosed price. Consorcio runs a network of 57 paint stores in Central America.
Consorcio operated as a concessionaire network for PPG-Comex, PPG Industries’ architectural paint and coatings business in Mexico and Central America. The acquisition was completed for $2.3 billion in Nov 2014.
With the Consorcio buyout, PPG now operates 87 company-owned stores in Belize, El Salvador, Guatemala, Honduras, Costa Rica, Nicaragua and Panama. The company intends to brand stores in Panama with its renowned Glidden brand.
PPG Industries has a diversified business and a leading position in several paints and coatings end markets. Healthy momentum across automotive OEM, automotive refinish and aerospace markets is expected to support its results this year.
PPG Industries is a Zacks Rank #3 (Hold) stock.
Better-ranked stocks in the chemical space include Stepan Company SCL, LyondellBasell Industries N.V. LYB and Celanese Corporation CE, all sporting a Zacks Rank #1 (Strong Buy).
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