Tuesday, 27 October 2015 | Joseph Chang | ICIS Chemical News
NEW YORK (ICIS)–US-based coatings company PPG Industries will continue to employ acquisitions to supplement organic growth, its executive chairman said on Tuesday.
“While we may not see as many big transactions, there are lots of opportunities as less than 50% of the coatings industry is in the hands of the top 10 players,” said Charles Bunch, executive chairman of PPG Industries.
Bunch spoke at The Valence Group/ICIS Mergers & Acquisitions (M&A) conference in New York.
PPG has around 15% global market share in coatings, he noted.
Aside from coatings, which represents around 95% of PPG’s over $15bn in sales, there are M&A opportunities in adjacent businesses such as adhesives and sealants and pre-treatment chemicals – “specialty chemicals that fit”, said Bunch.
Earlier this year, PPG acquired REVOCOAT, an automotive OEM (original equipment manufacturer) adhesives and sealants business primarily based in Europe, he noted.
As for its North American flat glass and global fibreglass assets, which are still a $1bn “less core” business, PPG is open to a divestiture, but “at the right value”, said Bunch.
With coatings already 95% of PPG’s portfolio, there is less pressure to divest, giving the company time to evaluate the right offers, he said.