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PPG Industries (PPG) to Acquire Paint Wholesaler ProCoatings

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PPG Industries, Inc. (PPG - Free Report) announced that it has reached a definitive agreement to acquire Netherlands-based leading architectural paint and coatings wholesaler, ProCoatings. The transaction is expected to close in first-quarter 2018, subject to customary closing conditions. However, the financial terms of the deal were kept under wraps.

Through its network of 23 multi-brand stores, ProCoatings distributes a large portfolio of professional paint brands across the Netherlands. This acquisition is expected to provide its business more opportunities to support customers and strengthen the company’s foothold in this important market.

In the last six months, PPG Industries’ shares have gained 6.7% underperforming the industry’s 14.7% growth.



PPG Industries expects continued moderate global economic growth. Post the mayhem caused by the recent natural disasters, which is expected to negatively impact fourth-quarter earnings by up to 5 cents per share, the company does not expect any further decline in the level of raw material cost inflation.

PPG Industries faces macroeconomic challenges. Some of its end-markets including marine still remain sluggish. It is also exposed to raw materials cost pressure. Moreover, lingering impacts of natural disasters may continue to affect sales volume and margins in the fourth quarter.

Zacks Rank & Stocks to Consider

PPG Industries currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the basic materials space are Huntsman Corporation (HUN - Free Report) , Daqo New Energy Corp. (DQ - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Huntsman has an expected long-term earnings growth rate of 8%. Its shares have soared 73.6% in the last one year.

Daqo New Energy has an expected long-term earnings growth rate of 7%. Its shares have rallied a whopping 216.7% over a year.

Kronos Worldwide has an expected long-term earnings growth rate of 5%. Its shares have surged 104.5% in the last one year.

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