Goodbye PPG architectural coatings. Hello “Pittsburgh Paints Co.”
Previously, we told you that PPG was spinning out its U.S. and Canadian Architectural Coatings business. The business unit was then sold to American Industrial Partners (AIP), an industrials investor with about $17 billion in assets.
This week, AIP announced the completion of the acquisition, and the name of the newly christened company, “The Pittsburgh Paints Company,” AKA “Pittsburgh Paints Co.”
The new name is meant to honor the newly borne company’s century-old roots with PPG. The Pittsburgh Paints Company name dates back to 18976, when the company began doing business previously.
Pittsburgh Paints Co. is already considered a market leader, among the top three paint producers across the U.S. and Canada. The new company will be the exclusive distributor for PPG’s protective and marine coatings business in the region.
“Now a newly independent company, we call on Pittsburgh Paints Co.’s 125-year legacy of innovation and product excellence as we chart an aggressive course of transformation and renewal within this extraordinary industry,” said AIP partner Rick Hoffman (no relation to the author of this story). “Pittsburgh Paints Co.’s broad foundation, respected brand portfolio, and experienced team are primed for growth, and we are proud to be their partners.”
PPG sold the architectural coatings unit for $550 million at the same time it announced a cost-reduction program across the U.S. and Europe that it says will shave off $175 million in operating costs once fully implemented.
Those reductions will mainly target European operations and will include closing facilities and targeting other fixed costs. PPG also says the cuts will impact about 1,800 jobs, which means layoffs are to come.
