PITTSBURGH - PPG's $2.3 billion acquisition of Mexico's largest paint maker Consorcio Comex S.A. de C.V. comes just months after competitor Sherwin-Williams dropped a similar attempt. The deal is subject to regulatory approval, which is expected to take four to six months.
PPG said it is confident it would gain regulatory approval by Mexico's antitrust regulator Federal Economic Competition Commission of Mexico, known as Cofeco, which had refused to authorize the Sherwin-William's acquisition. According to PPG, 65 percent of Comex's sales are in architectural coating, "a region where we have negligible architectural coatings presence," said Charles Bunch, PPG chairman and CEO.
Founded in 1952 and headquartered in Mexico City, Comex produces architectural, industrial and specialty coatings for sale in Mexico and Central America. The privately-owned company has eight manufacturing plants, six distribution centers throughout Mexico, and employs 3,900 people.
"Being part of PPG give us new growth opportunities and synergies that will allow us to continue growing in the market transcendental way," said Marcos Achar Levy, CEO of Comex Group, in a statement. "We are excited to participate in the growing Mexican economy and look forward to working with the Comex team as we integrate the business into PPG," he added.
The acquisition would grow PPG's (NYSE:PPG) coatings business in Latin America from 5% to 11%, and increase its coatings sales worldwide to approximately $14 billion.
The buyout is the latest in a string of recent acquisitions by the Pittsburgh-based paint and coatings manufacturer. On July 1, PPG announced it had completed the acquisition of the Pittsburgh-based paint distributor Masterwork Paint Co., thus expanding PPG's company-owned stores footprint.
On July 2, PPG completed its acquisition of The Homax Group Inc. from Olympus Partners. Homax is a leading supplier of specialty coatings, including decorative aerosol drywall and ceiling texturing products used primarily for home repair and sold through home improvement centers, hardware stores and paint suppliers.
Founded in 1883, and headquartered in Pittsburgh, PA, PPG operates in nearly 70 countries around the world. Reported net sales in 2013 were $15.1 billion. Among the company's product brands are: Glidden, Liquid Nails, Olympic, PPG Pittsburgh Paints, FLOOD, Manor Hall, PPG Porter Paints and Sikkens.
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