PPG Industries buys remaining stake in Italian joint venture
On November 11, 2016, PPG Industries (PPG) announced that it had bought the remaining 50% ownership in PPG Univer from Univer Italiana, its partner in the joint venture.
The joint venture between PPG Industries and Univer Italiana was set up a decade ago. PPG Univer manufactures architectural and liquid industrial coatings. The joint venture operates 12 retail stores in Italy with a workforce of 150. It also has administrative offices and a production facility at Cavallirio, Italy.
Jean-Marie Greindl, PPG’s senior vice president of global architectural coatings, said, “This transaction is an important step in PPG’s effort to continue strengthening our presence in Europe, positioning us well for further growth in Italy,” However, the financial transactions related to this deal weren’t disclosed.
PPG’s stock price
On November 11, 2016, PPG Industries closed at $95.77, rising 3.2% in the week. The Materials Select Sector SPDR ETF (XLB), which held 4.4% in PPG on November 11, also rose 3.8% in the week and closed at $48.15.
PPG’s peers Sherwin-Williams (SHW), RPM International (RPM), and Valspar (VAL) rose 7.9%, 9.0%, and 2.6%, respectively, in the same period. PPG’s stock price closed 5.8% lower than its 100-day moving average price of $101.67, indicating a downward trend.
Analysts expect PPG’s 12-month target price to be at $110.53, implying a potential return of ~15.4% over its closing price on November 11. On a year-to-date basis, PPG has fallen 3.1%.