In 1989 PPG acquired Olympic Stain for $134 million in cash, more than $340 million once adjusted for inflation.
In 2013 the paint giant paid more than $1 billion to buy Akzo Nobel, that purchase bringing Glidden, Flood, Liquid Nails and other less relevant brands under the PPG umbrella.
But little grows in the shade.
In October PPG reached an agreement to sell its beleaguered architectural coatings division to private equity firm American Industrial Partners for $550 million. In the deal AIP acquired all the brands which PPG paid nearly $2 billion for plus the PPG and Pittsburgh Paint, valuable brands the company had spent decades mismanaging.
Last week the companies announced that THE deal had been sealed.
Included with those brands were nine manufacturing facilities worth an estimated $80 million each according to one source familiar with such transactions, and 12 distribution centers estimated at $20 million each.
THE math makes that just .$50 on the dollar that AIP paid for PPG’s hard assets and nothing for the more than $2 billion in sales.
So much for being the number one paint brand in Walmart.
With the deal consummated Newco was free to announce the moniker; one which dealers will likely approve of, except for the grammarians.
Considering that brand’s history Pittsburgh was the right choice, though the pluralization of paint offends the ear forcing a lisp on all who dare to speak the name.
The Pittsburgh Paints Company.
An odd choice considering had THE word been left singular, plurality was still implied.
Independent Pittsburgh dealers tell me there’s still no word from freshly minted chief executive Jaime Irick regarding his vision for the company. And while I’m confident that that vision features independents in a prominent role dealers I heard from would rather hear that from Mr. Irick than to take it from me.
Considering this transaction’s far reaching impacts I’d be willing to dust off my microphone and record a podcast with Irick where he could share his vision for Pittsburgh with the dealers he just acquired.
And it won’t be just his dealers listening!
As a retailer I spent paint’s slowest season weeks behind my own counters, the time spent completing crucial year-end tasks such as taking inventory and reviewing my order points now that I had another year of sales data.
My presence in the stores also allowed managers to take more time off around the holidays, their perk of my Judaism. But with no counters to man nor cans to count, this year when my fiancéeic invited me to join her as she crossed Christmas in London off of her bucket list, I was available.
Before Christmas comes stops in Manchester, Edinburgh and Inverness, my deepest exploration yet into the British Isles.
While away I’ll keep writing though I plan to go old-school packing journals and pens in hopes of relieving the stress of my device addiction. And while I look forward to enjoying handwriting’s romantic nature it does bring its own stresses which technology has overcome such as spelling errors and strike throughs!
THE 16-day crossing represents the longest span of uninterrupted time Guy and I have shared in our 12-years together, which is no stress at all. Our plans to focus on each other make this my last post of the year.
One which I won’t soon forget.
So whether you celebrate Christmas, Hanukkah, Kwanzaa, or are just chilling out and enjoying other people’s holidays I hope you enjoy these next weeks, paint’s quietest! And have a happy New Year.
