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PPG Industries to Divest Silicas Product Business to QEMETICA
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PPG Industries Inc. (PPG - Free Report) has signed a definitive agreement to sell its silicas product business for approximately $310 million in pre-tax proceeds to QEMETICA S.A., a privately held manufacturer of soda ash, silicates and other specialty chemicals based in Warsaw, Poland. The deal is projected to close in the fourth quarter of 2024, pending customary closing conditions.
QEMETICA is a leading chemical manufacturer in Central Europe, with top-tier European production capacity for soda ash, vacuum salt and silicates. Its growth strategy focuses on building its global presence through acquisitions and expansion of activities outside of Europe to diversify its portfolio and enter new markets.
The sale is the conclusion of PPG's assessment of strategic alternatives for the business, which was initially disclosed in Jan. 2024. The divestment will allow the company to further focus its resources on its technology-differentiated coatings and specialty products businesses to boost organic growth and drive shareholder value. Morgan Stanley & Co. LLC served as PPG's financial advisor, while Hogan Lovells advised on legal matters.
PPG's silicas products business manufactures and distributes precipitated silica products worldwide as performance-enhancing additives. In 2023, the business, which is led by about 400 employees, accounted for 1-2% of the company’s overall net sales. The deal includes its precipitated silica manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands. QEMETICA will lease silicas manufacturing and R&D operations from PPG locations in Barberton, OH and Monroeville, PA.
Shares of PPG have lost 9.1% over the past year compared with its industry’s 10.2% decline.
Image Source: Zacks Investment Research
PPG projects adjusted earnings per share (EPS) for the third quarter to be in the range of $2.10-$2.20. For the full year, the company expects adjusted EPS to be in the range of $8.15-$8.30. These projections consider various factors such as current global economic activity, uneven global industrial production, reduced global automotive production, stabilizing demand in Europe, sustained growth in Mexico and India and low single-digit growth in China.
Better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Newmont Corporation (NEM - Free Report) .
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have gained 141.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. The consensus estimate for EGO's current-year earnings has gone up in the past 30 days. EGO, which currently sports a Zacks Rank of 1, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have gained roughly 92.6% in the past year.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82 per share, indicating a rise of 75% from the year-ago level. The consensus mark for NEM’s earnings has increased 14% in the past 60 days. NEM, which currently sports a Zacks Rank of 1, has gained nearly 33.4% in the past year.
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PPG Industries to Divest Silicas Product Business to QEMETICA
PPG Industries Inc. (PPG - Free Report) has signed a definitive agreement to sell its silicas product business for approximately $310 million in pre-tax proceeds to QEMETICA S.A., a privately held manufacturer of soda ash, silicates and other specialty chemicals based in Warsaw, Poland. The deal is projected to close in the fourth quarter of 2024, pending customary closing conditions.
QEMETICA is a leading chemical manufacturer in Central Europe, with top-tier European production capacity for soda ash, vacuum salt and silicates. Its growth strategy focuses on building its global presence through acquisitions and expansion of activities outside of Europe to diversify its portfolio and enter new markets.
The sale is the conclusion of PPG's assessment of strategic alternatives for the business, which was initially disclosed in Jan. 2024. The divestment will allow the company to further focus its resources on its technology-differentiated coatings and specialty products businesses to boost organic growth and drive shareholder value. Morgan Stanley & Co. LLC served as PPG's financial advisor, while Hogan Lovells advised on legal matters.
PPG's silicas products business manufactures and distributes precipitated silica products worldwide as performance-enhancing additives. In 2023, the business, which is led by about 400 employees, accounted for 1-2% of the company’s overall net sales. The deal includes its precipitated silica manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands. QEMETICA will lease silicas manufacturing and R&D operations from PPG locations in Barberton, OH and Monroeville, PA.
Shares of PPG have lost 9.1% over the past year compared with its industry’s 10.2% decline.
Image Source: Zacks Investment Research
PPG projects adjusted earnings per share (EPS) for the third quarter to be in the range of $2.10-$2.20. For the full year, the company expects adjusted EPS to be in the range of $8.15-$8.30. These projections consider various factors such as current global economic activity, uneven global industrial production, reduced global automotive production, stabilizing demand in Europe, sustained growth in Mexico and India and low single-digit growth in China.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart | PPG Industries, Inc. Quote
PPG’s Zacks Rank & Key Picks
PPG currently carries a Zacks Rank #4 (Sell).
Better-ranked stocks in the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Newmont Corporation (NEM - Free Report) .
Carpenter Technology currently sports a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.9%. The company's shares have gained 141.4% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Eldorado’s current-year earnings is pegged at $1.35 per share, indicating a year-over-year rise of 136.8%. The consensus estimate for EGO's current-year earnings has gone up in the past 30 days. EGO, which currently sports a Zacks Rank of 1, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 430.3%. The company's shares have gained roughly 92.6% in the past year.
The Zacks Consensus Estimate for Newmont’s current-year earnings is pegged at $2.82 per share, indicating a rise of 75% from the year-ago level. The consensus mark for NEM’s earnings has increased 14% in the past 60 days. NEM, which currently sports a Zacks Rank of 1, has gained nearly 33.4% in the past year.