TAGS: Architectural Coatings
PPG has reached a definitive agreement to acquire Ennis-Flint, a global manufacturer of coatings with a broad portfolio of pavement marking products, including paint, thermoplastics and other advanced traffic technologies. The transaction, valued at approximately $1.15 billion, is expected to close within the next few months, subject to customary closing conditions.
Acquisition to Expand PPG’s Mobility Technology Solutions
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The acquisition of Ennis-Flint will further expand our product offering and opportunities in rapidly developing and high-growth mobility technology solutions,” said Michael McGarry, PPG chairman and chief executive officer.
“The company is well known for its high-quality products, technical expertise and innovative systems. The addition of Ennis-Flint’s products further enhances our existing mobility technologies in support of increased automotive occupant safety through driver-assisted and autonomous driving systems. We look forward to the Ennis-Flint team joining PPG and working together to further expand the company’s product distribution on a global scale.”
Ennis-Flint to Attain Growth Opportunities
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We are excited to join the global PPG family,” added Matt Soule, president and CEO of Ennis-Flint.
“Our products and technologies are excellent complements to PPG’s current product offering, and the ability to leverage PPG’s world-class innovation and broad geographical footprint will provide more growth opportunities for our products and employees in the future.”
A high percentage of Ennis-Flint’s product sales are derived from non-discretionary, essential maintenance spending. Ennis-Flint supplies a wide range of products, including traffic paint, hot-applied and preformed thermoplastics, raised pavement markers and intelligent transportation systems from a network of manufacturing facilities within the United States, Europe, South America, and Asia.
The company employs approximately 1,000 people globally and its full year of 2020 revenue is expected to be approximately $600 million, with mid-teen percentage EBITDA margins.
PPG will provide additional details relating to the business acquisition, including acquisition-related financial impacts, during the company’s fourth quarter earnings conference call in January 2021.
Source: PPG