PPG appoints Morgan Stanley to review silica products business

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PPG appoints Morgan Stanley to review silica products business
Credit: © Reuters.

PITTSBURGH - PPG Industries Inc. (NYSE: PPG ), a major player in the global paints, coatings, and specialty materials industry, has initiated a strategic review of its silica products business. The company has enlisted Morgan Stanley & Co (NYSE: MS ). LLC as its financial advisor to explore various strategic alternatives aimed at enhancing shareholder value and ensuring the business's ongoing success.

The silica products division, a part of PPG’s specialty coatings and materials unit, is known for producing precipitated silica that serves as performance-enhancing additives for a range of manufacturers worldwide. This segment contributed to 1-2% of PPG's total net sales in 2023.

PPG's Chairman and CEO, Tim Knavish, commented on the review, highlighting the silica business's strong market position, innovative capabilities, and the dedication of its workforce. He noted the distinct nature of the business's product portfolio, customer base, and operational characteristics, suggesting that it may find better opportunities as part of another company or as an independent entity. Knavish reaffirmed the company's commitment to supporting the business and its customers during this strategic review process.

The review is expected to be concluded by mid-2024, but PPG has stated there is no certainty that this will result in a sale or any specific outcome. The company has also indicated that it will not provide regular updates on the review unless it considers further disclosure necessary or mandatory.

Approximately 350 employees lead the silica products business, with manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, The Netherlands. The business also includes a small batch processing operation in Barberton, Ohio, and a facility in Monroeville, Pennsylvania, which houses a laboratory, pilot plant, and administrative offices.

PPG has a long history with silicas, dating back to the 1930s, and has developed a broad portfolio of trusted precipitated silica products, including the PPG HI-SIL® and PPG AGILON® lines. These products find applications across diverse industries, including tires, industrial rubber, battery separators, and additives for paints and coatings.

This article is based on a press release statement from PPG.

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