PPG will acquire the architectural and industrial coatings company for $2.3 billion. Comex reported sales of about $1 billion in 2013 through about 36,000 stores in Mexico and Central America. PPG said the dell will be immediately accretive to earnings.
"The acquisition is very complementary to PPG as it adds a leading architectural coatings business in Mexico and Central America, a region where we have negligible architectural coatings presence," PPG CEO Charles E. Bunch said in a press release. "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."
Must read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates PPG INDUSTRIES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PPG INDUSTRIES INC (PPG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had sub par growth in net income."