This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

PPG rolls up Comex for $2.3B

Stocks in this article: PPG SHW

NEW YORK (The Deal) -- PPG Industries (PPG) said Monday it has a deal in place to acquire Consorcio Comex for $2.3 billion in cash, stepping in after a failed effort by rival Sherwin-Williams (SHW) to buy the Mexican coatings manufacturer.

Privately-held Comex of Mexico City is a manufacturer of paints and other coatings sold at more than 3,600 stores in Mexico and Central America. The company employs 3,900 at eight manufacturing facilities and six distribution centers, generating sales of about $1 billion in 2013.

Sherwin-Williams had agreed to buy Comex in 2012 for $2.34 billion, but that deal fell apart after Mexican regulators objected after noting the combination would control more than half of the Mexican market. Cleveland-based Sherwin-Williams acquired the U.S. and Canada operations of Comex for $165 million in September, but terminated the offer for the rest of the company in April.

Comex in May sued Sherwin-Williams, claiming the U.S. company had not tried hard enough to get the deal done.

PPG chairman and CEO Charles E. Bunch in a statement said that his company currently has a "negligible architectural coating presence" in Mexico and Central America, calling the purchase complimentary to PPG.

"Comex is a high-quality, well-managed business with a long heritage of excellent customer service and leading, well-recognized regional brands," Bunch said. "We are excited to participate in the growing Mexican economy and look forward to working with the Comex team as we integrate the business into PPG."

PPG intends to fund the purchase with cash and short-term investments on hand, but Bunch said that a portion of the price could be funded through additional debt. PPG had $3 billion in cash and short-term investments on hand as of March 31, but the company on April 17 said its board had approved a $2 billion in share repurchases and a 10% increase to the quarterly dividend.

Comex CEO Marcos Achar Levy in a statement said that "being part of PPG gives us new opportunities and synergies that will allow us to continue to significantly grow in our markets."

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs