PPG Divests Certain Business Activities in Africa to Océinde

Rhea-AI Summary

PPG (NYSE: PPG) has announced the divestiture of its business activities in Senegal, Ivory Coast, Cameroon, Gabon, and Algeria to Océinde, a Réunion-based industrial group. This agreement includes a licensing and distribution contract for the SEIGNEURIE® paint range. Océinde will take over the employees in these regions and strengthen its relationship with PPG, which has supplied specialty materials to Océinde. Both companies aim to enhance service delivery in the African market, benefiting from a long-term collaboration.

Positive

• Strengthened partnership with Océinde, enhancing service in the African market.
• PPG's existing licensing and distribution agreement for SEIGNEURIE® paint remains intact.
• Employees will transition to Océinde, ensuring job continuity.

Negative

• Divestiture could signify a strategic retreat from the African market.
• Potential loss of direct control over operations in key African countries.

PARIS--(BUSINESS WIRE)-- PPG (NYSE: PPG) today announced that it has agreed to divest certain business activities in Senegal, Ivory Coast, Cameroon, Gabon and Algeria to Océinde, an industrial group based in Réunion, France. Océinde will continue to offer the existing range of products, including SEIGNEURIE® paint, through a licensing and distribution agreement.

Océinde has a range of business activities in Europe, the Indian Ocean and Africa, including architectural coatings distribution and manufacturing. This partnership will strengthen a longstanding relationship between the companies, which includes the supply of specialty materials from Océinde to PPG.

PPG employees in the countries concerned will join Océinde. In addition, Olivier Bouin, currently PPG general manager, Architectural Coatings Africa French Overseas and Suriname, will join Océinde as General Manager for the Trade Architectural Coatings market in Africa.

“We are convinced that this change of business model will benefit our customers in Africa,” said Pascal Tisseyre, PPG vice president, Architectural Coatings, Europe, Middle East and Africa - South. “Both companies are looking forward to working together to better serve the African market.”

"We are proud of the trust shown by PPG as well as all the employees who are joining us today," said Nassir Goulamaly, CEO of Océinde. "We have been investing for decades in the innovation of architectural coatings dedicated to the growing African market and this agreement will help us support that. Congratulations also to our team who have successfully deployed the group's three core values as part of this project: Innovation, industrialization, internalization."

PPG: WE PROTECT AND BEAUTIFY THE WORLD™

At PPG (NYSE:PPG), we work every day to develop and deliver the paints, coatings and specialty materials that our customers have trusted for nearly 140 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 75 countries and reported net sales of $16.8 billion in 2021. 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 the timing of and expected benefits of the Océinde transaction. Actual events may differ materially from current expectations and are subject to a number of risks and uncertainties, including the satisfaction of the conditions of the divestiture and other risks related to completion of the divestiture and actions related thereto; the parties’ ability to complete the divestiture on the anticipated terms and schedule, including the ability to obtain regulatory approvals; 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.

Seigneurie is a registered trademark of PPG AC-France

CATEGORY Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20220401005040/en/

Media Contact:

Mark Silvey

Corporate Communications

+1-412-434-3046

silvey@ppg.com

Investor Contact:

John Bruno

Investor Relations

+1-412-434-3466

jbruno@ppg.com

investor.ppg.com

Source: PPG

FAQ

What business activities is PPG divesting in Africa?

PPG is divesting its business activities in Senegal, Ivory Coast, Cameroon, Gabon, and Algeria.

Who is acquiring PPG's business in Africa?

Océinde, an industrial group based in Réunion, is acquiring PPG's business activities.

What products will Océinde continue to offer after the acquisition?

Océinde will continue to offer the SEIGNEURIE® paint range under a licensing and distribution agreement.

What is the expected benefit of the partnership between PPG and Océinde?

The partnership is expected to enhance service delivery in the African market.

When was the divestiture announcement made?

The announcement regarding the divestiture was made on the date of the press release.