In an ongoing effort to monetize their investment the new owners of Pittsburgh Paints offer their assets for sale to anyone with interest, even cold calling manufacturers, distributors and retailers looking to make a deal.
PPG’s Architectural Coatings Division garnered little interest from around THE industry when offered for sale, explaining how American Industrial Partners was able to acquire more than $2 billion in revenue and nearly $1 billion in assets for just $550 million.
But combine AIP’s lower cost basis with private equity’s strategy of deconstruction and those assets are attracting attention in board rooms from Montvale to points west. Making it likely that when the final chapter of this story is written, Pittsburgh’s paint company will look dramatically different than its current iteration.
If it exists at all!
Once the sub brands and superfluous infrastructure are returned to cash AIP will be left with paint’s Holy Trinity: distribution through our market three segment’s: company-owned stores, home centers and independent retailers.
But for AIP that trinity may prove to be more holey than holy.
Because Pittsburgh’s company owned stores average less than $1 million in revenue each year, which any dealer reading knows makes them unprofitable. Making it likely that stronger stores and regions will be sold off to independents and regional manufacturers, the remaining likely shuttered.
Before his shitcanning former Pittsburgh CEO Jaime Irick was scheduled to visit Montvale for four hours to discuss the disposition of PPC assets. Sources confirm that despite THE pink-slipping that meeting Ben Moore still plan to meet with AIP, though the meeting’s length has been trimmed to 90-minutes by the Ben Moore side.
Because there’s only one thing they want to discuss.
Pittsburgh’s independent channel remains the company’s most valuable asset and one I’m told is for sale by multiple sources. And while the prospect of another transition unnerves some dealers, most I’m in touch with find comfort in the knowledge that whoever buys the channel will likely be an existing paint manufacturer interested in operated that business.
Which even if it’s not Benjamin Moore, will be an upgrade over both PPG and private equity.
It also remains possible that AIP retains this segment, which could be operated profitably with one plant and a few distribution centers. That would allow the firm to maintain their boast that they’re a collaborative operating partner.
Which private equity never is.
With the assets scattered and the stores and dealers sorted what remains of the former PPG architectural division will likely be closed, creating phantom losses for AIP to help offset their sizable gains.
It’s only the mass merchant segment and any corporate remains which should suffer this fate, senior industry executives I’m in touch with share that there’s little interest in Irick’s Folly or the remaining big box brands which PPG paid billions for.
Devalued by years of bad management.
Sherwin-Williams chief executive Hiedi Petz shared THE news last week that she expects “demand softness to persist in several end markets well into the second half of the year, if not into 2026.”
And that was before US President Donald Trump levied retaliatory tariffs on Canada and Mexico.
With more than $10 billion in debt Sherwin is in no position to withstand eight quarters of market softness or worse, declines in demand as a result of inflation which tariffs bring. Already tight for cash with only $200 million in the bank against all that debt Ms. Petz was also been forced to budget more than $80 million to cover the price of former CEO John Morikis’ vanity.
The money is needed to complete the punch list at Sherwin’s new corporate headquarters and innovation labs, the opening of which has been delayed more than a year due to construction deficiencies, ironically including a significant coatings failure.
So Heidi if you’re reading, you know I’m NACE certified?
