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PPG Extends Its Presence in EMEA Region with DEUTEK Acquisition

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PPG completes acquisition of DEUTEK

On January 5, 2017, PPG Industries (PPG) announced that it had completed the acquisition of DEUTEK, a leading Romanian paint and architectural coatings manufacturer. PPG didn’t disclose the financial terms of the deal. DEUTEK reported sales of $30 million euros in 2015. For PPG Industries, this deal is very important, as the acquisition will increase its presence in the region. PPG has a very small presence in architectural coatings.

Jean-Marie Greindl, PPG’s senior vice president, said, “this important acquisition in Romania extends our presence in the region and complements our positions in Poland, Czech Republic, Hungary, and Slovakia.”

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About DEUTEK

DEUTEK manufactures and markets consumer and professional paints. DEUTEK has brands like OSKAR and Danke. DEUTEK products are sold through 120 do-it-yourself stores and 3,500 independent retail stores in Romania.

PPG’s stock price

As of January 6, 2017, PPG Industries closed at $95.59 and had risen 0.9% for the week. The Materials Select Sector SPDR ETF (XLB), which holds 4.5% in PPG as of January 6, rose 1.9% and outperformed PPG Industries for the week. XLB closed at $50.62. PPG peers Sherwin-Williams (SHW) and Valspar (VAL) rose 3.8% and 0.3%, respectively, while RPM International (RPM) dropped 1.7% for the same period.

PPG’s stock price closed 2.7% lower than the 100-day moving average price of $98.28. The 100-day moving average price has dropped from $100.68 on December 1, 2016, to $98.62 as of December 30, 2016, indicating a downward trend in the stock. Analysts expect PPG’s 12-month target price to be at $110.60, implying a potential return of ~15.7% over the closing price of January 6, 2017. In 2016, PPG Industries dropped 4.0%.

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