Trian Partners Activist Presentation Deck
How Separating into Two Smaller Companies Could Lead to Further
Shareholder Value Enhancement
• Coatings multiples will likely continue to be supported by strategic optionality
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Consolidation in coatings has been driven by economies of scale on raw material
purchasing, manufacturing, distribution, sales and R&D
The coatings supply chain has also been consolidating – both upstream suppliers and large
customers (i.e., retail, industrial, automotive)
By separating into two smaller companies, we believe PPG could participate more easily in
prudent M&A (more organizational capacity to do strategic acquisitions)
Cost Synergies in a Typical Coatings Deal
Synergy Amount
Line Item
Raw Materials Purchasing
Plant Rationalization
Headquarters Cost
Sales Force Consolidation
Distribution
Total Cost Synergies
Source: Diligence calls, Deutsche Bank research.
0.5%-2.5% of sales
$1-$5 million/ plant
0.5% of sales
1%-5% of sales
0.5%-1.5% of sales
3%-10%+ of sales
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