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PPG coats itself in deal with Hemmelrath
Posted on Wednesday, 09 January 2019 07:55
PPG has announced it is adding to its paints and materials business by acquiring Germany-based automotive coatings manufacturer Hemmelrath for an undisclosed sum.
The transaction, subject to the usual raft of closing conditions, is expected to complete in the first half of 2019.
Headquartered in Klingenberg, the target claims to be the global leader in providing environmentally-friendly waterborne primers and basecoats for the automotive industry.
Its products include Premium Prime, designed to combine the mechanical properties of primers- such as stone-chip protection and substrate coverage- with the components of basecoats that create colours and effects.
Hemmelrath has more than 450 employees and has manufacturing sites in Germany, China, the US and Brazil, and services over 7.00 million vehicles annually.
Rebecca Liebert, vice president of PPG, said: “The acquisition will enhance PPG’s automotive coatings offering, and add formulating and manufacturing solutions.”
Michael McGarry, chief executive of the buyer, added that the deal is part of the company’s strategic growth plan that will ensure value for both its customers and shareholders.
Established in 1883, PPG is a global manufacturer of paints, coatings and speciality materials for the industrial, transport, consumer product and consumer market sectors.
It has 47,000 employees worldwide, including in North America, Europe, the Middle East, Latin America and the Asia-Pacific region.
For the nine months ended 30th September 2018, it posted sales of USD 11.72 billion, up from USD 11.06 billion in the preceding 12 months.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 128 deals targeting paint and coating manufacturers announced worldwide in 2018.
UBS Group, in the largest of these, agreed to buy a minority stake in Netherlands-based Akzo Nobel for EUR 1.28 billion.
Other companies targeted in this sector include IGM Specialities Holding, Letong Chemical, Socomore and Shanghai Kinlita Chemical.
© Zephus Ltd