Paint Company PPG to Cut 1,800 Jobs, Sell Architectural Coatings Business

Paint and coatings manufacturer PPG plans to sell its multi-billion dollar North American coatings business amid a broader effort to slash its costs, company officials announced.

‘Strategic Alternatives’ for Architectural Coatings

PPG earlier this year announced plans to explore “strategic alternatives” for its architectural coatings segment in the U.S. and Canada, which produces paints, stains, caulks, adhesives, and other products for both professionals and homeowners under brands including Glidden, Olympic, and Pittsburgh Paints & Stains.

Company executives said at the time that they hoped to maximize value for PPG’s shareholders — potentially through a sale or a new joint venture — following a recent “modernization” effort within the business. Architectural coatings sales in the U.S. and Canada accounted for approximately $2 billion of PPG’s 2023 total net sales.

A $550 Million Deal

PPG recently announced an agreement to sell the North American coatings division to American Industrial Partners, a private equity partnership that invests in industrial businesses. The deal is valued at $550 million.

Officials said the move would help optimize PPG’s overall portfolio and provide resources to improve both organic growth and financial returns. The transaction is expected to close later this year or in early 2025.

Cutting Jobs and Facilities

PPG simultaneously announced a plan to cut costs by about $175 million annually following the divestiture of the coatings business and an earlier deal to sell off its silica products segment. The multi-year effort, officials said, would include about 1,800 layoffs and “various facility closures,” mostly in the U.S. and Europe.

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