Painting and coatings giant PPG last week announced that it was exploring strategic alternatives to spin off its architectural coatings business.

PPG’s architectural coatings arm manufactures and sells paints, stains, caulks, and sealants and includes such notable brands as Glidden, Olympic, Liquid Nails, and Pittsburgh Paints & Stains. Goldman Sachs has been brought in to help PPG shop the division, which does business across the U.S. and Canada.

Glidden and Liquid Nails became part of PPG’s portfolio when it acquired AkzoNobel’s North American architectural coatings business in 2023. At the time, the unit was valued at $15.1 billion with assets of $15.9 billion.

“We will assess whether some or all of the business could be better suited to grow faster with a partner or different owner, or may be better suited to operate as a core business within another company, as a standalone entity, or in a joint venture,” said CEO Tim Knavish in the press release released last Monday.

Asked to comment for APC about the implications this would have for professional paint contractors who use its products, PPG Director of Corporate Communications Mark Silvey said, “We don’t have anything to share right now beyond the news release from last week.”

The architectural coatings unit could be worth anywhere from $800 million to $1 billion, according to analysts at Barclays. With $17.15 billion in revenue in 2022, PPG is second only to Sherwin-Williams  ($21.64 billion) among the leading paint and coating companies worldwide, according to Satista. PPG has closed numerous stores across North America as it tries to fend off fierce competition from Sherwin-Williams. 

PPG expects to complete the strategic review of its architectural coatings business by mid-2024 and notes that it may or may not result in an actual transaction.

Said Knavish: “As we have done consistently, we will continue our ongoing strategic assessment of all our businesses, ensuring each business continually delivers increased value for our customers and shareholders and fits the growth investment strategies for the company.”

Look for a more detailed examination of this story in Thursday's Paint News.