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January 28, 2025
By: KERRY PIANOFORTE
Editor, Coatings World
The architectural paint and coatings market is the largest segment in the coatings industry, with estimates from MarketsandMarkets placing it at approximately $85 billion in 2023, growing at a CAGR of 3.9% from 2023 to 2028. The market research firm has reported that leading multinational corporations are relocating their manufacturing bases, opening sales offices, and expanding distribution networks to countries with high demand, such as the rapidly growing Asia Pacific region. The relocation of manufacturing facilities to nations with high demand and cheaper production costs has a favorable impact on market growth. One of the most significant changes to the architectural coatings market was PPG’s sale of 100% of its architectural coatings business in the U.S. and Canada at a transaction value of $550 million to American Industrial Partners (AIP), an industrials investor. The architectural coatings business in the U.S. and Canada represented approximately $2 billion of PPG’s 2023 total net sales, with low-single-digit EBITDA margin. The transaction is the result of PPG’s evaluation of strategic alternatives for the business, which was first announced on Feb. 26, 2024. PPG’s former architectural coatings business in the U.S. and Canada is an industry leader in residential and commercial architectural coatings through its well-known portfolio of brands, including GLIDDEN, OLYMPIC, LIQUID NAILS, HOMAX, PITTSBURGH PAINTS & STAINS, Manor Hall, FLOOD, DULUX (in Canada), and SICO, among others. The business manufactures and sells interior and exterior paints, stains, caulks, repair products, adhesives, and sealants for homeowners and professionals. It also includes certain light-duty protective coatings products that are primarily sold through company-owned stores and manufactured through a common factory footprint. The transaction included the following architectural coatings facilities: • Manufacturing: East Point, Georgia; Oakwood, Georgia; Louisville, Kentucky; Huron, Ohio; Reno, Nevada; Carrollton, Texas; Temple, Texas; Delta, British Columbia (Canada); and Vaughan, Ontario (Canada). • Distribution Centers: Huron, Ohio; Oakwood, Georgia; Reno, Nevada; Aurora, Illinois; Flower Mound, Texas; Riverside, California; Reading, Pennsylvania; Carolina, Puerto Rico; Calgary, Alberta (Canada); Delta, British Columbia (Canada); Toronto, Ontario (Canada); and Moncton, New Brunswick (Canada). • More than 15,000 points of sale, including 750 company-owned stores, 6,600 independent dealer locations, and 8,100 major home improvement centers and retailer locations across the U.S., Canada and Puerto Rico.
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