PaintSquare.com


The First Word in Protective & Marine Coatings

A Product of Technology Publishing / PaintSquare
JPCL | PaintSquare News | Durability + Design | Paint BidTracker

Editorial License

By Karen Kapsanis
| More

Back to main blog page

About the Blogger

Karen Kapsanis

Editorial License by Karen Kapsanis

Karen Kapsanis is the Editor in Chief of the Journal of Protective Coatings & Linings, an inexplicably lifelong fan of the Green Bay Packers, and a surprisingly speedy sprinter.

Blog Archives

Thursday, May 16, 2013

Merger Mania, and Why It Matters

Over the past 30 years in the coatings industry, mergers and acquisitions have affected every kind of coatings-related business—from coatings suppliers and equipment manufacturers to contractors, raw materials suppliers, and consultancies.

For most people, M&As have more to do with high-level executives, stockholders, and boards of directors. It’s just business.

AkzoNobel

The corporate coatings landscape is in perpetual flux. In 2012, AkzoNobel split off ICI Pakistan and created a separate paint business called AkzoNobel Pakistan Limited.

Companies are in the business of making money for themselves and their stockholders. It’s the rarefied atmosphere of high finance.

Feeding the Corporate Beast

Of course, it’s not just a coatings thing: Small and large companies of all sorts have whetted the appetites of larger companies around the world.

Here in Pittsburgh, we are getting our own taste of corporate consumption in everything from non-profits to airlines to a beloved Pittsburgh original: Berkshire Hathaway and 3G Capital just bought Heinz.

Warren Buffett's Berkshire Hathaway just partnered with 3G Capital to swallow Heinz.

The region’s main health insurance company just acquired about half a dozen hospitals. More than a dozen other hospitals in the region have merged or been purchased over the past decade or so by what is now one huge health care system—with its own insurance program.

American Airlines and U.S. Airways are merging. Years ago, our then-largest regional bank sold its retail operations and joined up with a major financial institution, and the banking headquarters left town.

Ralph Lauren Paints

Last year, Ralph Lauren Paints was a brand of AkzoNobel. Today, it belongs to PPG, acquired with the rest of  AkzoNobel's North American Decorative Paints business.

Ripple Effects and Aftershocks

But employees who don’t live in the world of high finance and whose companies have been bought, sold or merged know firsthand the other risks and effects of such deals—job insecurity, financial instability, loss of health insurance, problems paying the bills.

We’re feeling them right here in Pittsburgh. Eliminating duplicate departments in any M&A often means job loss, and once the Heinz deal was announced, many Pittsburghers started wondering if or how many Pittburgh jobs would be eliminated, and everything that goes with those jobs.

Georgia Gulf

PPG recently split off its Commodity Chemicals unit into a new company called Splitco, and then immediately merged the business with chemical maker Georgia Gulf into a new independent entity called Axiall Corp. Got that?

The airline M&A, the bank deals, and all the other consolidations likely have raised similar questions among employees.

Gains and Losses

And there are other costs here. Airline ticket prices have already gone up. Job losses will hurt the region’s economy.

As for the two major health systems here, each with its own hospitals and health insurance program, the potential conflict of interest between keeping insurance coverage costs down and providing the best available medical treatment is only one of the ways these M&As put the quality of health care in Pittsburgh at risk (for anyone lucky enough to have health insurance).

Metlac

AkzoNobel recently suffered a rare setback in the M&A world when the UK put the brakes on its plan to purchase packaging coatings maker Metlac.

Mergers and acquisitions: It’s not just business. It’s personal. Your community’s economy. Your job. Your mortgage. Your family’s grocery bill, well being, and health.




More items for Coating Materials
   

Tagged categories: Acquisitions; AkzoNobel; Business matters; Mergers; PPG

Comment from Bogdan Dana, (5/17/2013, 3:46 AM)

Maybe it is just me, I am not trying to be phylosophical, but mergers and acquisitions are made with just one purpose in mind: to make more money with less work. Some Companies make a stretch though to buy others hoping they will then get bigger purchasing power for their raw materials they use to make their finished products, so they are not all that bad (the big conglomerates). Best regards, Bogdan Dana


Comment Join the Conversation:

Sign in to our community to add your comments.

Wasser High-Tech Coatings Inc.
Wasser Coatings Protect

some of the most important bridges in the country; learn about our NEPCOAT-approved system and our entire range of MCU & Polyurea coatings. 1-800-627-2968 www.wassercoatings.com


BASF
New resins from BASF will have metals loving water:

Excellent corrosion resistance, low VOC, high gloss, thin films basf.us/industrialcoatings
polyorders@basf.com
800-231-7868


International Paint LLC

International Paint Engineered Coatings

Learn about our solutions for:
  • Structural Steel
  • Piping & Equipment
  • Storage Tanks
  • Pressure Vessels
  • Secondary Containment


    Polyval Coatings
    Polyflex® Polyurea Linings

    exhibit outstanding versatility in use; providing abrasion resistance, superior seamless waterproofing and high-chem corrosion protection. www.polyflexlinings.com


    Mitsubishi Gas Chemical America
    Performance Amine 1,3-BAC

    A highly reactive cycloaliphatic diamine offering superior performance. Reasonable cost and curing efficacy makes it suitable for all types of epoxy resin applications.


    Sherwin-Williams
    Heat-FLex® Hi-Temp 1200

    • Improved Corrosion
      Resistance
    • Enhanced Durability
    • Faster Shop Throughput


    Denso North America Inc.
    Denso Tank Base
    Protection System

    An easily applied prevention system, utilizing Denso tapes and coatings around the tank base, that helps prevent corrosion from external elements.
    Call 1-281-821-3355 or Visit www.densona.com

  •  
     
     
    Technology Publishing

    The Technology Publishing Network

    The Journal of Protective Coatings & Linings (JPCL) PaintSquare
    Durability + Design Paint BidTracker JPCL Europe

     
    EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
    REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
    MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
     

    © Copyright 2000-2014, Technology Publishing / PaintSquare, All rights reserved
    2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com