PPG Industries’ new acquisition
On January 2, 2018, PPG Industries (PPG) announced that it had entered a definitive agreement to acquire ProCoatings, a Netherlands-based wholesaler specialized in architectural paint and coatings. It was established in 2001 with a network of 23 stores selling multibrand paints and coatings.
This acquisition could help PPG to increase its presence in Europe. PPG expects the transaction to be completed in the first quarter of 2018. PPG didn’t disclose the financial terms of this deal.
PPG’s Jean Marie Greindl said, “ProCoatings is a well-managed business, providing excellent customer service to a diverse portfolio of customers in the west and north of The Netherlands. This acquisition will provide our business with even greater opportunities to support our customers and strengthen our presence in this important market.”
PPG begins first week of 2018 on a positive note
PPG Industries closed at $118.92, a rise of 1.80% for the week ended January 5, 2018. PPG’s peers Axalta (AXTA), Sherwin-Williams (SHW), and RPM International rose 1.3%, 2.8%, and 4.0%, respectively. However, it underperformed the Guggenheim S&P 500 Equal Weight Materials ETF (RTM), which rose 3.5% for the same period. RTM has invested 3.9% of its portfolio in PPG Industries.
PPG’s gain in stock prices has widened its 100-day moving average gap. PPG traded 6.0% above the 100-day moving average price of $112.80, indicating an upward trend in the stock. PPG’s 14-day relative strength index (or RSI) of 65 indicates that the stock is neither overbought nor oversold.