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June 19, 2015
By: Kerry Pianoforte
Editor, Coatings World
PPG Industries held a meeting for securities analysts in Cabo San Lucas, Mexico. The meeting included presentations by Michael McGarry, PPG president and chief operating officer; and Marcos Achar Levy, PPG vice president, architectural coatings, Latin America, and chief executive officer, PPG-Comex. During the meeting, PPG reviewed details of PPG-Comex Mexican operations, provided information about the growth of the Mexican economy and PPG-Comex, and toured PPG-Comex concessionaire locations. The company indicated during the meeting it expects cost synergies associated with the Comex acquisition to be $45 million to $50 million by the end of 2016, up from the company’s previous guidance of $30 million to $40 million. PPG also issued new acquisition-related revenue synergy targets for the PPG-Comex acquisition. The company expects to generate $40 million to $50 million in revenue within two years from sales of legacy PPG products through the PPG-Comex distribution network. PPG set a separate revenue target of $60 million to $70 million within five years for incremental coatings sales in Central America. PPG had previously issued no incremental revenue guidance relating to Comex. PPG completed its acquisition of Comex in November 2014.
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