PPG Industries, Inc.
PPG
recently announced that it is set to acquire Tikkurila, a leading Nordic paint and coatings company. However, the news failed to make an impression on the market as there has been no major price change since the announcement on Dec18, 2020.
The transaction will be in all cash and per the terms, PPG Industries will issue a tender offer to acquire the issued and outstanding stocks of Tikkurila. The shareholders of Tikkurila will receive €25 ($30.48) in cash, for every stock of the acquired company that they own. The total value of this transaction is around €1.1 billion ($1.34 billion), including debt and cash assumptions. The deal is expected to be completed by the second quarter of 2021, subject to customary closing conditions.
The Tikkurila buyout will expand PPG’s Industries’ portfolio and provide customers with a wider range of paint and coatings options. The company expects to incorporate Tikkurila’s high-quality, environment-friendly products with its renowned industrial coatings. The company will also benefit from Tikkurila’s presence in several northern and eastern European countries, where it has minimal footing.
Earlier this month, PPG Industries announced that it is set to acquire Ennis-Flint, a global manufacturer of coatings. Ennis-Flint has a broad portfolio of pavement marking products, including paint, thermoplastics and other advanced traffic technologies.
The deal, valued at roughly $1.15 billion, is expected to be completed within the next few months, subject to customary closing conditions. The acquisition will help the company expand its product portfolio and broaden opportunities in rapidly developing and high-growth mobility technology solutions.
Shares of PPG Industries have increased 8.3% in the past year compared with 9% rise of
industry
.
PPG Industries is actively managing costs amid a challenging environment due to the coronavirus pandemic. The company is expecting restructuring savings of $30-$35 million for the last quarter of 2020. Moreover, the company expects corporate expenses of $55-$60 million and net interest expenses of $28-$30 million for the fourth quarter. Sales volume for the quarter is also expected to be down low-to-mid-single digit percentage, differing by region and business.
PPG Industries, Inc. Price and Consensus
PPG Industries, Inc. price-consensus-chart
|
PPG Industries, Inc. Quote
Zacks Rank & Key Picks
PPG Industries currently sports a Zacks Rank #3 (Hold).
Some other better-ranked stocks worth considering in the basic materials space are
Bunge Limited
BG
,
BHP Group
BHP
and
Clearwater Paper Corporation
CLW
.
Bunge has a projected earnings growth rate of 43% for the current year. The company’s shares have gained around 12.3% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
BHP has an expected earnings growth rate of around 32.4% for the current year. The company’s shares have gained around 18.7% in the past year. It currently flaunts a Zacks Rank #1.
Clearwater has an expected earnings growth rate of 1,960.9% for the current year. The company’s shares have surged around 70% in the past year. It currently sports a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report