Canadian Manufacturing

PPG buying Comex for US$2.3B, boosting Latin American presence

Pittsburgh-based PPG looking to bolster architectural coatings presence in Mexico, Central America

PITTSBURGH—Paint and coatings maker PPG Industries is buying Consorcio Comex SA de CV for US$2.3 billion to help bolster its architectural coatings presence in Mexico and Central America.

Comex makes coatings and related products in Mexico and sells them in Mexico and Central America.

Pittsburgh-based PPG makes coatings, specialty materials and glass products.

Privately held Comex, based in Mexico City, had 2013 sales of about US$1 billion.

Its brands include Effex, Texturi and its namesake.

Comex has eight manufacturing plants and six distribution centres.

PPG plans to fund the transaction mostly with available cash and short-term investments, but may fund part of the acquisition with the addition of debt.

The deal is expected to immediately add to PPG’s earnings, excluding one-time acquisition-related costs.

The transaction may take four to six months to complete.

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