PPG Industries to Divest Silicas Product Business to QEMETICA

Core Viewpoint - PPG Industries Inc. has agreed to sell its silicas product business for approximately $310 million to QEMETICA S.A., with the transaction expected to close in Q4 2024, pending customary conditions [1][3]. Company Overview - PPG's silicas products business manufactures and distributes precipitated silica products globally, accounting for 1-2% of the company's overall net sales in 2023 [4]. - The business employs around 400 people and includes manufacturing plants in Lake Charles, LA, and Delfzijl, the Netherlands [4]. Strategic Focus - The divestment is part of PPG's strategic assessment initiated in January 2024, allowing the company to concentrate on its technology-differentiated coatings and specialty products to enhance organic growth and shareholder value [3]. - Morgan Stanley & Co. LLC acted as PPG's financial advisor, while Hogan Lovells provided legal advice for the transaction [3]. Market Context - QEMETICA S.A. is a prominent chemical manufacturer in Central Europe, focusing on expanding its global presence through acquisitions and diversifying its portfolio [2]. - PPG's shares have decreased by 9.1% over the past year, compared to a 10.2% decline in its industry [6]. Financial Projections - PPG anticipates adjusted earnings per share (EPS) for Q3 to be between $2.10 and $2.20, and for the full year, the adjusted EPS is expected to range from $8.15 to $8.30 [7].