PPG Industries, a Pittsburgh-based manufacturer globally recognized for its paints, coatings, and specialty materials, has announced plans to lay off approximately 1,800 employees. The workforce reduction is part of a comprehensive cost-cutting initiative aimed at streamlining operations across the United States and Europe. Details regarding the timing of the layoffs have not been disclosed.
The company explained that the job cuts are a component of a broader strategy to adjust its fixed cost basis and optimize its business structure following recent divestitures. PPG’s Chairman and CEO, Tim Knavish, stated, “While these decisions are difficult, they are necessary to adjust our fixed cost base and to right-size our company.” This follows the company’s plans to sell its silicas products business and its architectural coatings sector in North America.
In line with its restructuring efforts, PPG has reached an agreement to sell its U.S. and Canadian architectural coatings business to the private equity firm American Industrial Partners (AIP). This division, which includes well-known brands such as Glidden, Olympic, Manor Hall, and Liquid Nails, accounted for $2 billion of PPG’s total net sales last year. The transaction, valued at $550 million, is anticipated to close between late 2024 and early 2025.
PPG is also in the process of divesting its silicas products business to QEMETICA S.A., a Poland-based company, for approximately $310 million. Like the deal with AIP, this transaction is pending closure.
The news of layoffs and divestitures comes immediately after PPG reported underwhelming third-quarter financial results. The company disclosed a net income of $468 million, or $2.13 per share, with total revenue reaching $4.58 billion, falling short of the projections set by analysts on Wall Street.
Rick Hoffman, a partner at AIP, expressed enthusiasm regarding the acquisition, noting, “We are thrilled to be acquiring a storied business with a heritage dating back 125 years.” Knavish also emphasized that the divestitures will “further optimize” PPG’s portfolio, allowing the company to invest more heavily in its key growth areas.
The operational changes come amid a challenging economic landscape marked by stagnant home sales and rising mortgage rates in the United States, which have influenced consumer spending patterns.
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