PPG completes acquisition of global coatings manufacturer Ennis-Flint

Rhea-AI Summary

PPG (NYSE: PPG) has successfully completed the acquisition of Ennis-Flint, a leader in pavement markings and traffic safety solutions. Ennis-Flint, generating approximately $600 million in revenue for 2020 with mid-teen EBITDA margins, enhances PPG's portfolio in the traffic safety sector. This acquisition is expected to strengthen PPG’s market position and provide synergies in operations. More financial details will be shared during PPG's upcoming fourth quarter earnings call in January 2021.

Positive

• Acquisition of Ennis-Flint strengthens PPG's position in the traffic safety market.
• Ennis-Flint's revenue of approximately $600 million and mid-teen EBITDA margins may enhance PPG's financial performance.
• Potential synergies expected from integrating Ennis-Flint's operations.

Negative

• Integration challenges may arise from the acquisition.
• Financial performance is subject to risks such as government funding levels and the impact of the COVID-19 pandemic.

PPG (NYSE:PPG) today announced that it has completed its acquisition of Ennis-Flint.

Ennis-Flint is a global leader in pavement markings and traffic safety solutions with a wide range of products, including traffic paint, hot-applied and preformed thermoplastics, raised pavement markers and intelligent transportation systems. The company has approximately 1,000 employees globally, with a network of manufacturing facilities within the United States, Europe, South America, Australia and Asia. Ennis-Flint’s full year of 2020 revenue is expected to be approximately $600 million, with mid-teen percentage EBITDA margins.

PPG will provide additional details relating to the business acquisition, including acquisition-related financial impacts, during the company’s fourth quarter earnings conference call in January 2021.

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 135 years. Through dedication and creativity, we solve our customers’ biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of $15.1 billion in 2019. We serve customers in construction, consumer products, industrial and transportation markets and aftermarkets. To learn more, visit www.ppg.com.

Forward-Looking Statements

The forward-looking statements contained herein include statements relating to Ennis-Flint’s full year of 2020 revenue and margins. Actual results may differ materially from current expectations and are subject to a number of risks and uncertainties, including government funding levels, the effect of the Covid-19 pandemic and the other risks and uncertainties discussed in PPG’s periodic reports on Form 10-K and Form 10-Q and its current reports on Form 8-K filed with the Securities and Exchange Commission.

We protect and beautify the world is a trademark and the PPG Logo is a registered trademark of PPG Industries Ohio, Inc.

CATEGORY Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20201224005005/en/

FAQ

What is the significance of PPG's acquisition of Ennis-Flint?

The acquisition enhances PPG's market position in traffic safety and pavement markings, potentially increasing revenue streams.

What are the expected financial impacts from the Ennis-Flint acquisition?

Ennis-Flint is anticipated to contribute approximately $600 million in revenue and mid-teen EBITDA margins to PPG.

When will PPG provide more information about the acquisition's impact?

PPG will discuss the acquisition-related financial impacts during its fourth quarter earnings conference call in January 2021.

What products does Ennis-Flint offer?

Ennis-Flint offers a wide range of products, including traffic paint, thermoplastics, raised pavement markers, and intelligent transportation systems.