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PPG Wraps Up Sale of Silicas Products Business to QEMETICA

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PPG Industries Inc. (PPG - Free Report) stated that it has completed the divestment of its silicas products business to QEMETICA, a privately held manufacturer of soda ash, silicates and other specialty chemicals headquartered in Warsaw, Poland, for about $310 million in pre-tax proceeds.

PPG's silicas products division manufactures and distributes precipitated silica products to major companies worldwide as performance-enhancing additives. In 2023, the business accounted for 1-2% of PPG's overall net sales. The divestment includes PPG's precipitated silica manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands. In addition, QEMETICA will lease silicas manufacturing and research and development (R&D) operations at PPG locations in Barberton, OH, and Monroeville, PA. 

QEMETICA is a leading chemical manufacturer in Europe, with top-tier production capability for soda ash, evaporated salt and silicates. The company's growth strategy focuses on expanding its global presence through strategic acquisitions and activities outside of Europe, with the goal of diversifying its portfolio and entering new markets. QEMETICA blends modern business practices with a commitment to long-term development. 

The transaction is the conclusion of PPG's assessment of strategic alternatives for the business, which was initially announced on Jan. 9, 2024. Morgan Stanley & Co. LLC served as PPG's financial advisor, while Hogan Lovells advised on legal matters.

PPG Industries shares have lost 8.4% in the past year compared with the industry’s decline of 8.5% over the same period.

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PPG anticipates flat organic sales and adjusted earnings per share at the bottom end of the $8.15 to $8.30 range for the full-year 2024.

PPG’s Rank & Key Picks

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

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , DuPont de Nemours, Inc. (DD - Free Report) and CF Industries Inc. (CF - Free Report) . 

Carpenter Technology currently carries 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 14.1%. The company's shares have soared 160% in the past year. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DD’s current-year earnings is pegged at $3.88 per share, indicating a year-over-year rise of 11.5%. DD, a Zacks Rank #2 (Buy) stock, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 12.9%. The company's shares have rallied roughly 16.9% in the past year.

The Zacks Consensus Estimate for CF’s current-year earnings is pegged at $6.32 per share. CF, a Zacks Rank #1 stock, beat the consensus estimate in two of the last four quarters while missed twice, with the average earnings surprise being 10.3%. CF has rallied around 18.3% in the past year.

 


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