PPG to Take Ennis-Flint for $1.15 Billion
US paints group PPG Industries has agreed to buy Ennis-Flint, a manufacturer of specialized coatings for traffic safety solutions, for about $1.15 billion from private equity owner Olympus Partners. The deal is expected to close within the next few months, subject to the usual conditions.
Headquartered in Greensboro, North Carolina, USA, Ennis-Flint has a broad portfolio of products, including traffic paint, hot-applied and preformed thermoplastics, raised pavement markers and other technologies for advanced traffic systems. It operates a network of 20 manufacturing facilities in Europe, the US, South America and Asia, employing roughly 1,000 people worldwide. The company expects revenues in 2020 to be about $600 million.
“The acquisition of Ennis-Flint will further expand our product offering and opportunities in rapidly developing and high-growth mobility technology solutions,” said PPG chairman and CEO Michael McGarry. “The addition of Ennis-Flint’s products further enhances our existing mobility technologies in support of increased automotive occupant safety through driver-assisted and autonomous driving systems. We look forward to the Ennis-Flint team joining PPG and working together to further expand the company’s product distribution on a global scale.”
Many of Ennis-Flint’s products are proprietary and the company derives a high percentage of its sales from non-discretionary, essential maintenance spending.
PPG formed a mobility focus team in 2017 to develop technologies and technical solutions for electric, hybrid and autonomous vehicles. The Pittsburgh paint maker has developed several mobility-related products, such as battery-specific coatings, autonomous vehicle coatings that improve vehicle and infrastructure visibility, and interior coatings that increase surface functionality and durability.
Olympus acquired a majority interest in Ennis-Flint in June 2016 from Dallas-based Brazos Private Equity Partners. Under Olympus’ ownership, Ennis-Flint made six acquisitions and added several new manufacturing facilities across Europe, North America and Australia.
Author: Elaine Burridge, Freelance Journalist
