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PPG Industries Bought Remaining Stake in IVC Joint Venture in Asia

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PPG Industries acquires remaining stake in IVC in Asia

On April 6, 2017, PPG Industries (PPG) announced that it had bought the remaining 50% ownership interest from its joint venture in IVC (Malaysia) and IVC-OPS (Singapore) from its joint venture partner, Omni-Plus System. The joint venture clocked sales of less than $10 million in 2016. The joint venture was formed in 2008 and primarily supplies industrial coatings to the appliance and electronics materials segment.

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The acquisition includes both the Malaysia and Singapore entities. However, PPG didn’t disclose the financial terms. PPG Industries’ vice president of global industrial coatings, Shelley Bausch, said, “This transaction is an important follow-up to PPG’s 2015 acquisition of IVC Industrial Coatings, Inc., which is now fully integrated into our industrial coatings business.”

PPG Industries’ stock price movement last week

On April 7, 2017, PPG Industries closed at $106.05 and rose 0.9% for the week. The Materials Select Sector SPDR ETF (XLB), which holds 4.8% in PPG as of April 7, rose 0.3% and underperformed PPG Industries for the week. Sherwin-Williams (SHW) rose 0.90%, while Axalta (AXTA) and RPM International (RPM) dropped 2.9% and 5.0%, respectively.

PPG stock closed 6.2% above its 100-day moving average price of $99.85, indicating an upward trend in the stock. Analysts predict PPG’s 12-month target price to be at $111.90, implying a potential return of 5.5% over the closing price on April 7, 2017. On a year-to-date (or YTD) basis, PPG has risen 11.9%. PPG’s 14-day relative strength index (or RSI) of 61 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates the stock is overbought while an RSI of 30 indicates the stock is oversold.

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