It’s been nearly two-months since American Industrial Partners completed their acquisition of PPG’s $2 billion architectural coatings division, more than enough time to disclose their intentions for those brands.
Had that been their intention.
But since announcing the company’s new name and its new CEO there’s been scant communication from the Steel City paint maker, frustrating both dealers and employees with stakes in those intentions.
Two-weeks ago I reported that Pittsburgh’s chief executive Jaime Irick had been abruptly sacked, with no word in that time of any replacement. THE silence raising questions among stakeholders, only one of which can be answered.
It would be in new owners interests to share their plans for the brand, without buy-in from employees and dealers what value would they have?
Unless those employees and dealers are not part of the plan!
In the weeks since Irick’s firing I’ve spoken with multiple sources who confirmed they had either met with Irick to discuss the disposition of Pittsburgh assets or were scheduled to do so before he was shitcanned.
Though selling off pieces was not what cost Irick his job as sources confirm that that effort is still ongoing.
In the acquisition AIP received an abundance of assets including nine manufacturing facilities worth as much as $80 million each, several of which are likely contributing to overcapacity. Selling that capacity could cash out AIP’s $550 million investment in Pittsburgh before the ink was even dry.
Also on the chopping block are the more than a dozen distribution centers of the former PPG, some of which will be excess once other changes are made. Plus 750 company-owned stores, which sources also confirm have been offered for sale in whole and in part.
And it’s not clear yet if they’re liability or asset.
Other assets are the stand-alone brands such as Liquid Nails, Homax and Flood, which could easily be monetized without too much disruption to the remaining portfolio.
If that is even a concern.
Until those unknowns are known it’s unlikely we’ll hear much of Pittsburgh’s vision for their future, which may be just to operate what’s left after the asset dispositions.
If anything. THE transparency of private equity’s intentions here explains the silence out of Pittsburgh, which is at-least an upgrade over Charles Gassenheimer’s lies.
THE lack of communications is better suited to the strategy, so I’m expecting more of the same as they cash out their loot. And considering the undignified ending for these once auspicious brands, maybe it’s all better left unsaid anyway?
Free Drinks in Pittsburgh?
It’s the employees of Pittsburgh most caught in this vice, many of whom are facing the risk of employment transition for a second time this year.
While others fear worse.
With no words coming from headquarters Pittsburgh they turn elsewhere for news of their lament.
And they know just where to find it!
