PPG To Sell Architectural Coatings U.S., Canada; Cost Reduction To Impact About 1,800 Positions

(RTTNews) - PPG (PPG) has reached a definitive agreement to sell 100% of its architectural coatings business in the U.S. and Canada at a transaction value of $550 million to American Industrial Partners. Net cash paid to PPG at closing will include customary adjustments for working capital and net debt.

The company also announced a comprehensive cost reduction program with anticipated annualized pre-tax savings of approximately $175 million once fully implemented, including savings of $60 million in 2025. PPG expects the cost reduction program to impact about 1,800 positions, primarily in Europe and the U.S. The program includes various facility closures and other targeted fixed costs. The company will record a pre-tax charge of approximately $250 million in the fourth quarter 2024, and other charges over the next several years.