PPG submits offer for French sealants, adhesives business unit

PPG Industries Inc. wants to take control of a French supplier of sealants and adhesives to the aerospace and automotive industries, as the Downtown-based company pursues growth through acquisitions.

PPG said Friday that it submitted an offer to become the majority owner of Le Joint Francais' sealants and adhesives business unit for an undisclosed price. Le Joint Francais is a subsidiary of Paris-based Hutchinson Group and is based in Bezons, France.

PPG spokesman Mark Silvey declined to say what percentage of the business PPG had offered to buy or disclose the unit's revenue. The business unit, which has been a licensee of PPG aerospace sealant products for more than 60 years, serves the automotive and aerospace industries and employs more than 200 people.

“This would allow us to serve our aerospace and automotive customers with greater geographic reach and with a wider array of automotive products,” said Michael McGarry, PPG's chief operating officer.

Silvey declined to detail which countries PPG would gain access to through the deal.

The deal is PPG's second for a French sealants business in recent months. In December, the company said it was in talks to buy Revocoat, a subsidiary of Axson Group, which makes sealants and adhesives for a variety of markets, including industrial transportation.

The Revocoat deal is expected to close before March 31. The deal with Le Joint Francais is expected to close in the second half of this year.

PPG has been on a buying spree, primarily in the paint industry. During the past 15 years, the company has made 65 acquisitions in pursuit of a paint expansion strategy.

It spent $2.3 billion last year to buy Consorcio Comex, a Mexico City-based paint company with $1 billion in sales in 2013. PPG purchased two paint store chains in Western Pennsylvania last year, Westmoreland Supply Co. in Greensburg and Masterwork Paint Co. in East Liberty.

PPG expects to spend between $1.5 billion and $2.5 billion during the next two years on acquisitions and stock repurchases.

Dmitry Silversteyn, an analyst with Longbow Research in Independence, Ohio, said that although most of PPG's acquisitions have been in the paint industry, sealants and adhesives are a “close adjacency.” It should boost its existing business supplies sealants and adhesives to automakers.

“PPG already has sealants and adhesives in aerospace,” Silversteyn said. “This gets them into auto OEM (original equipment manufacturer) space where they are very strong on the coatings side.”

Alex Nixon is a staff writer for Trib Total Media. He can be reached at 412-320-7928 or anixon@tribweb.com.