PPG Industries, a worldwide leader in paints, coatings, and specialty materials, disclosed on May 28, 2025, that it has entered into a definitive agreement to sell its U.S. and Canada architectural coatings business to American Industrial Partners (AIP), a private equity investment firm, for $550 million.
The transaction, finalized on December 2, 2024, ahead of schedule, represents a strategic shift for PPG to maximize its portfolio, concentrating on higher-margin businesses in the face of a tough global economy.
For India’s USD 3.5 trillion economy, the deal indicates possibilities to consolidate its USD 10 billion coatings market, although MSME integration and regulatory challenges are hurdles.
The sold business with about USD 2 billion in 2023 revenues is one of the major manufacturers of interior and exterior paints, stains, caulks, adhesives, and sealants with legendary brands GLIDDEN®, OLYMPIC®, LIQUID NAILS®, and PITTSBURGH PAINTS & STAINS®.
With more than 6,000 employees across 750 company-owned retail locations and 15,000 points of sale, it comprises nine manufacturing sites in Georgia, Kentucky, Ohio, Nevada, Texas, and Canada, according to PPG’s investor relations.
Rebranded The Pittsburgh Paints Company by AIP, the company will be the sole distributor of PPG’s Protective and Marine Coatings (PMC) business, including brands such as AMERCOAT®, according to a 2024 PR Newswire press release.
PGP’s move, initially indicated on February 26, 2024, is attributed to the unit’s single-digit EBITDA margins, which negatively affected the operating income of the Performance Coatings segment by 300 basis points in 2023, according to PPG’s investor relations.
The transaction, sponsored by Goldman Sachs and Hogan Lovells, adds more than 200 basis points of organic growth on a three-year pro forma basis to PPG’s growth, freeing up resources for investment in core markets in Latin America, Europe, and Asia Pacific, where PPG is in leading #1 or #2 positions, according to a 2024 Business Wire report.
In conjunction with the sale, PPG initiated a cost-cutting program, aiming at USD 175 million in pre-tax annual savings by 2027, of which USD 60 million in 2025, affecting 1,800 jobs, mainly in Europe and the U.S., according to Yahoo Finance.
AIP, with USD 16 billion in assets, views the acquisition as a driver of growth, using its industrial knowledge to expand The Pittsburgh Paints Company’s market share, according to Invezz. CEO Jaime Irick underscored AIP’s operating intensity as the key driver to drive value, according to an American Industrial Partners 2024 release.
For India, the agreement provides strategic perspectives. Indian coatings market, worth ₹70,000 crore in 2024, is driven by infrastructure under PM Gati Shakti and housing demand through Pradhan Mantri Awas Yojana (PMAY), according to a 2024 CII report. MSMEs, providing 40% of coating inputs, could gain from technology transfers if AIP increases supply chains to India.
Government programs such as the ₹50,000 crore Production-Linked Incentive (PLI) scheme spur MSME innovation and generate 30% of industry output. The Open Network for Digital Commerce (ONDC) increases MSME market access by 25%, according to a 2024 SIDBI report.
Challenges remain. Regulatory approvals for international deals, which take 4–6 years compared to China’s 2, may discourage such investments in India, according to a 2024 Nasscom report. MSMEs incur compliance expenses of ₹1–2 lakh per month, keeping international supply chain integration in check. Infrastructure deficits, such as erratic power, interrupt production, impacting 20% of the units.
Shortage of skills, with a mere 5% of Skill India’s 2 million trained workforce having expertise in cutting-edge coating technology, slows progress. Volatility in international trade, affecting 30% of India’s chemical exports, puts pressure, according to a 2024 UNCTAD report.
Experts suggest solutions. Technology Upgradation Scheme subsidies can alleviate MSME expenses. Scaling up technical training of Skill India can plug gaps. Increased 5G and power reliability through PM Gati Shakti will stabilize the system. Public-private collaboration with IITs can create cost-effective coating technology. CII-initiated campaigns can accelerate ONDC adoption and sectoral awareness.
PPG’s USD 550 million sale to AIP, a strategic step to rationalize operations, re-maps the North American coatings industry while providing India with an opportunity to reinforce its sector.
By solving regulatory, skill, and infrastructure hurdles, India can leverage the overseas shifts, fueling growth into a Viksit Bharat by 2030.