Sale Marks Strategic Shift for PPG; QEMETICA to Expand Global Footprint
PPG, a prominent global entity in the paints, coatings, and specialty materials sectors, has signed a definitive agreement to sell its silicas products business to QEMETICA S.A. for approximately $310 million. The transaction, anticipated to finalize in the fourth quarter of 2024, encompasses PPG’s silicas manufacturing plants located in Lake Charles, Louisiana, and Delfzijl, The Netherlands, along with the leasing of additional facilities in Barberton, Ohio, and Monroeville, Pennsylvania.
Focus on Core Operations and Growth Initiatives
This divestiture aligns with PPG’s strategic decision to concentrate on its core businesses, particularly in coatings and specialty products, and represents a continuation of the company’s efforts to optimize its portfolio. Tim Knavish, PPG’s chairman and CEO, expressed confidence in the transaction, stating, “This agreement with QEMETICA enables us to channel our resources into our high-growth areas while enhancing shareholder value. We appreciate the hard work of our silicas business team and their dedication to quality.”
QEMETICA to Enhance Market Presence
For QEMETICA, a privately held chemical manufacturer based in Warsaw, Poland, this acquisition represents a significant step in its growth strategy. With strong production capabilities in Central Europe, the company aims to broaden its market presence beyond Europe and diversify its portfolio of specialty chemicals. The inclusion of PPG’s silicas business, which accounted for 1-2% of PPG’s net sales in 2023, is expected to bolster QEMETICA’s position in the global market.
Morgan Stanley & Co. LLC and Hogan Lovells acted as financial and legal advisors, respectively, to PPG in this transaction. The deal is subject to customary closing conditions.
