Industrial Coatings

Industrial Coatings M&A
and Deal Volume Resurgence

Cost increases for coatings manufacturers → Tariffs on essential raw materials, such as polyurea and epoxy resins, could lead to higher prices for protective coatings. For instance, the U.S. coatings industry, which enjoys a positive trade surplus of $1.6 billion, may face increased costs due to tariffs on imports from major trading partners.

Potential supply chain delays → The U.S. imports key ingredients from Europe and Asia, and tariffs could cause disruptions in availability. This may lead to longer lead times for industrial coatings, impacting end-use industries such as automotives, where coatings account for up to 20% of vehicle production costs.

Push toward alternative materials → Rising costs may accelerate the industry’s shift toward eco-friendly and water-based coatings, a trend already gaining momentum. Innovations in coating technologies, such as eco-friendly formulations and advanced application methods, are emerging as key trends.

Global Industrial Coatings Market Size

2025 to 2034, $B

2024 Notable Transactions

2024 was a strong year of transactions in the Industrials Coating M&A space with momentum expected to continue into 2025

Transaction Detail: In April 2024, Apollo Global Management acquired U.S. Silica for $1.9 billion. U.S. Silica, an industrial silica and diversified minerals producer primarily serving the Oil & Gas industry, will continue to operate under its current brand and maintain its existing executive team.

Rationale: Apollo’s acquisition of U.S. Silica enhances the company’s ability to expand operational strategies and market reach. Under Apollo’s ownership, U.S. Silica will benefit from increased access to capital to support innovation and improve operational efficiencies. The deal solidifies Apollo’s position in the Chemicals sector, driving aggressive expansion and potential acquisitions in the Specialty Chemicals market.

Transaction Detail: In July 2024, American Industrial Partners acquired Veolia’s North American Sulfuric Acid Regeneration business for $620 million in enterprise value. The business will be rebranded as Nexpera, helping refineries cleanly process and regenerate sulfur gas, acid, and potassium hydroxide, essential to the alkylation process.

Rationale: The acquisition of Veolia’s sulfuric acid regeneration business by AIP positions Nexpera as a leading provider of outsourced refinery regeneration services, capitalizing on transformative advancements in the industry over the last two decades.

Transaction Detail: Qemetica, a Poland-based manufacturer of soda ash, silicates, and specialty chemicals, acquired PPG’s Silicas Products business for $310 million in enterprise value. The acquisition includes two manufacturing facilities located in Louisiana and the Netherlands, along with leased silicas manufacturing and R&D operations at PPG sites in Ohio and Pennsylvania.

Rationale: This acquisition strengthens Qemetica’s portfolio, adding a significant business line in precipitated silica, which complements its existing operations in soda ash, silicates, and specialty chemicals. The integration of the Silicas Products business is part of Qemetica’s 2024-2029 strategy, which focuses on increasing the independence of its individual businesses.

Transaction Detail Saint-Gobain announced its acquisition of CEMIX, a construction chemicals business operating in Mexico and Central America, for $815 million. The transaction includes 16 manufacturing plants, 10 logistics hubs, and around 1,000 employees. CEMIX is recognized for its strong brand in tile adhesives, façade coatings, waterproofing, and surface preparations.

Rationale: The acquisition of CEMIX aligns with Saint-Gobain’s “Grow & Impact” strategic plan, reinforcing its presence in construction chemicals and expanding its footprint in high-growth markets. With CEMIX’s established brand and strong growth trajectory, Saint-Gobain is positioned to enhance its market share and accelerate its growth in the construction sector.