PPG Industries’ new acquisition
PPG Industries (PPG) continued its acquisition spree to complement its commitment of cash deployment towards acquisitions and share repurchases. On January 7, PPG Industries announced that it signed a definitive agreement to acquire Hemmelrath—an automotive coating manufacturer. PPG Industries expects the deal to be completed in the first half of 2019. However, PPG Industries didn’t disclose the financial aspects of the acquisition.
Hemmelrath is PPG Industries’ second acquisition in the past month. On December 14, PPG Industries entered into a definitive agreement to acquire Whitford Worldwide. The acquisitions suggest that PPG Industries is looking to grow its top and bottom line through an acquisition strategy. The acquisition will likely complement PPG Industries’ automotive segment and increase the company’s foothold.
Michael McGarry, PPG Industries’ chairman and CEO, said, “We are excited to add Hemmelrath to our robust and diversified automotive coatings offering. This acquisition is another step forward in our strategic growth plan that will provide further value to our customers and shareholders.”
PPG Industries closed on a positive note with a marginal gain of 0.3%. PPG Industries closed at $100.24 on January 7. So far, PPG Industries has fallen 2% in 2019. Investors could hold PPG Industries indirectly by investing in the Invesco S&P 500 Equal Weight Materials ETF (RTM), which has invested 4.1% of its portfolio in PPG Industries. The fund also provides exposure to Celanese (CE), Air Products and Chemicals (APD), and Eastman Chemical (EMN) with weights of 4.3%, 4.2%, and 4.2%, respectively.