PPG to Sell Architectural Coatings Business for $550 Million, Deal Includes Distribution Center in Berks County; Company Also Plans Cost Cuts

— Jeff Ward, Lehigh Valley News Briefs

PPG, a Pittsburgh-based maker of paints and specialty materials, has agreed to sell its architectural coatings — paints and stains — business to American Industrial Partners for $550 million.

The deal includes a distribution center in Reading, Berks County, according to a PPG statement. Company-owned stores will also be included in the sale to American Industrial, a private equity firm.

PPG (NYSE:PPG) said the transaction will be complete late this year or in early 2025. The business includes paints, stains, adhesives and other products, under the Glidden, Olympic and other brands.

The company also said it plans to cut annual costs by about $175 million, starting with about $60 million in 2025.

“The multi-year program is focused on reducing structural costs primarily in Europe and in certain other global businesses” the company said. About 1,800 jobs will be affected, mainly in Europe and the U.S.

The architectural coatings business accounted for about $2 billion of 2023 sales.

Shares of PPG were trading at $130.01 at 10:37 a.m. Thursday.