PPG To Review Strategic Alternatives For Silica Products Business
Portfolio Pulse from Benzinga Newsdesk
PPG Industries, Inc. is considering strategic alternatives for its silica products business, which contributes 1-2% of its net sales. The company has engaged Morgan Stanley as a financial advisor for this review. PPG's silica business is known for its performance-enhancing additives used in various industries. CEO Tim Knavish believes the business could thrive better as part of another company or as a standalone entity. The review is expected to be completed by mid-2024, and PPG will not provide regular updates unless necessary. The silica business includes facilities in Louisiana, The Netherlands, Ohio, and Pennsylvania, employing around 350 people.
January 09, 2024 | 1:06 pm
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PPG is reviewing strategic alternatives for its silica products business, which may include a sale or making it a standalone entity. This segment accounts for 1-2% of PPG's net sales.
The strategic review of PPG's silica business could lead to a sale or spin-off, which might be positive for the company's focus and resource allocation. However, since the segment represents a small portion of PPG's sales, the immediate impact on the stock price may be limited. The outcome is uncertain until the review is completed by mid-2024.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 100