American Industrial Partners (AIP), an industrials investor, announced that American Industrial Partners Capital Fund VIII has entered into a definitive agreement to acquire the U.S. and Canadian architectural coatings business (the “Company”) of PPG. The transaction is expected to close in late 2024 or early 2025 and is subject to customary closing conditions.

PPG’s architectural coatings business in the U.S. and Canada generated 2023 revenue of approximately $2 billion and is a leading producer of interior and exterior paints, stains, caulks, repair products, adhesives, and sealants for homeowners and professionals, as well as certain light-duty protective coatings products.

The Company will also serve as the exclusive distributor for PPG’s Protective Marine and Coating business segment.

“Our entire team is excited to begin this next chapter for our business and I am confident AIP is the ideal partner for us as we pursue our value creation plans as an independent company. AIP’s strong operational approach and customer focus, combined with its track record and building products expertise, will be highly complementary to our team,” said Jaime Irick, CEO of the Company.

“Through our efforts to modernize our architectural coatings business model, we have instituted value-added customer-facing digital tools, revamped our manufacturing and distribution footprint, and introduced innovative products that enhance customer productivity and sustainability. Leveraging this growth momentum alongside AIP’s industry knowledge will enable us to continue our business transformation and expand to new markets.”