PPG has finalized an agreement to divest its entire architectural coatings operation in the United States and Canada to American Industrial Partners, valuing the transaction at $550 million. Upon closing, PPG will receive net cash that reflects standard adjustments for working capital and net debt obligations.
Additionally, PPG has unveiled a broad cost reduction initiative projected to achieve annualized pre-tax savings of about $175 million once fully executed. This includes projected savings of $60 million in 2025. The initiative is set to affect approximately 1,800 positions, mainly within Europe and the U.S., and involves the shutdown of select facilities as well as other targeted reductions in fixed costs. The company anticipates recording a pre-tax charge of roughly $250 million in the fourth quarter of 2024, with additional charges occurring over the subsequent years.
