American Industrial Partners, an industrials investor, announced on Oct. 17 that American Industrial Partners Capital Fund VIII has entered into a definitive agreement to acquire the U.S. and Canadian architectural coatings business of PPG. The transaction is expected to close in late-2024 or early-2025 and is subject to customary closing conditions.

PPG’s architectural coatings business in the U.S. and Canada generated 2023 revenue of approximately $2 billion and is a leading producer of interior and exterior paints, stains, caulks, repair products, adhesives and sealants for homeowners and professionals, as well as certain light-duty protective coatings products, in the United States and Canada. Its deep, well-known market presence includes some of the industry’s most iconic brands, such as GLIDDEN, PITTSBURGH PAINTS & STAINS, Manor Hall, OLYMPIC, LIQUID NAILS, HOMAX, TRUEFINISH, MULCO, FLOOD, DULUX (in Canada) and SICO. The company, through its stores network and dealer relationships, will also serve as the exclusive distributor for PPG’s Protective Marine and Coating business segment, including for the distribution of brands like AMERCOAT and AMERLOCK. PPG’s architectural business for the U.S. and Canada is headquartered in Cranberry, Pennsylvania, and employs more than 6,000 employees across its U.S. and Canadian facilities, which includes 750 company-owned stores.

“Our entire team is excited to begin this next chapter for our business, and I am confident AIP is the ideal partner for us as we pursue our value creation plans as an independent company,” said Jaime Irick, chief executive officer of PPG’s architectural coatings business in the U.S. and Canada. “AIP’s strong operational approach and customer focus, combined with its track record and building products expertise, will be highly complementary to our team. Through our efforts to modernize our architectural coatings business model, we have instituted value-added customer-facing digital tools, revamped our manufacturing and distribution footprint, and introduced innovative products that enhance customer productivity and sustainability. Leveraging this growth momentum alongside AIP’s industry knowledge will enable us to continue our business transformation and expand to new markets.”

“We’re thrilled to be acquiring a storied business with a heritage dating back 125 years and look forward to partnering with the management team and employees to deliver best-in-class customer service across product and brand innovations,” said Rick Hoffman, partner at AIP. “As a longtime leader in residential and commercial architectural paint with some of the industry’s most iconic brands, the company is well-positioned to benefit from growth in both the Pro and DIY consumer categories.”

Ropes & Gray LLP served as legal counsel to AIP.