{
  "docId": "019dd923-622b-71dc-a6db-615d7f9553a7",
  "docSlug": "90d63e982928",
  "documentTitle": "PPG Industries, Inc. (PPG)",
  "authorId": "06_Trian_Partners",
  "authorName": "Trian Partners",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2018-10-11 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 6,
  "pageCount": 42,
  "prevPage": 5,
  "nextPage": 7,
  "slideType": "precedent_table",
  "function": "cite_precedent",
  "density": "dense",
  "nDataPoints": 15,
  "notes": "The table highlights a 15.1x average EBITDA multiple for recent deals.",
  "elementsJson": [
    "headline_text",
    "bullet_list",
    "comparison_table",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622b-71dc-a6db-615d7f9553a7/6",
  "deckHref": "/decks/019dd923-622b-71dc-a6db-615d7f9553a7",
  "deckJsonHref": "/decks/019dd923-622b-71dc-a6db-615d7f9553a7.json",
  "deckAnchorHref": "/decks/019dd923-622b-71dc-a6db-615d7f9553a7#slide-6",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Recent large scale deals have been completed at ~11-17x EBITDA",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8554-15cb53946ded",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.18,
        "w": 0.85,
        "x": 0.09,
        "y": 0.11
      },
      "kind": "list",
      "text": "Strategic transactions are relevant considering the rapid pace of consolidation in coatings\nTop 10 players in the coatings market hold ~50% market share, up from ~30% 10 years ago\nRecent large scale deals have been completed at ~11-17x EBITDA\nTrian estimates that PPG’s Board valued Akzo Nobel’s Coatings business at ~15x forward EBITDA based on its final offer price in 2017(1)",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "3c9c6b0a-2e12-483c-8380-d3981ad017b1",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "metric",
      "text": "EV / LTM EBITDA: 15.1x",
      "attrs": null,
      "subkind": "primary",
      "toolName": "Quantification",
      "toolSlug": "quantification",
      "confidence": null,
      "componentId": "019dd953-1ac3-70f9-8554-1be91a8af5ac",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.93,
        "x": 0.04,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: Wall Street research, press releases.\n(1) Valuation of Akzo’s coatings business assumes PPG’s final offer price of €96.75, net debt of €2.3bn (Q1 17) and EBITDA of €2.1bn (2017A). Analysis strips out the Specialty Chemicals business at the purchase consideration recently offered by GIC/Carlyle.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "25917668-8c88-4198-b038-053b11142e2a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.53,
        "w": 0.81,
        "x": 0.11,
        "y": 0.33
      },
      "kind": "table",
      "text": "Close Date | Acquiror | Target | Deal EV ($bn) | EV / LTM EBITDA\nJun-17 | Sherwin-Williams | Valspar | $10.9 | 16.9x\nMar-17 | Henkel | Darex Packaging | $1.1 | 17.0x\nDec-16 | Akzo Nobel | BASF Industrial Coatings | $0.5 | 10.7x\nNov-16 | Evonik | APD Performance Materials | $3.8 | 15.8x\nNov-16 | BASF | ALB Surface Treatment | $3.2 | 15.3x\nAverage | | | | 15.1x",
      "attrs": null,
      "subkind": "data",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a75d64ea-71b5-4475-8c6f-6d8feed6d92f",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.04,
        "w": 0.88,
        "x": 0.06,
        "y": 0.04
      },
      "kind": "title",
      "text": "Valued at a Meaningful Discount to Precedents/Strategic Value",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0fd9ba57-191a-4d56-a612-38a2e1ac4417",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "precedent_table",
      "slug": null,
      "matchId": "636f886e-f86e-4495-84cd-3739d2116d91",
      "evidence": "Table comparing recent M&A transaction multiples",
      "confidence": 1
    }
  ],
  "arcBeats": [
    {
      "to": 15,
      "from": 5,
      "beatId": "6757edd9-cb2e-47b9-95f4-7251960ab60d",
      "arcName": "Problem-Agitate-Solution",
      "arcSlug": "problem-agitate-solution",
      "beatName": "Problem & Complication",
      "beatSlug": "consultants-gambit-problem-complication",
      "evidence": "The document highlights PPG's underperformance, missed targets, and accounting irregularities, and exposes contradictions in management's decisions and actions.",
      "position": 1,
      "confidence": 0.8,
      "parentBeatName": "Complication",
      "parentBeatSlug": "complication"
    }
  ],
  "loops": [
    {
      "to": 9,
      "from": 5,
      "name": "Pattern Hunter",
      "slug": "02-pattern-hunter",
      "bestFor": "Time-pressed audiences, building consensus, when data is strong",
      "matchId": "db2c090a-5f11-4d93-9942-609ebd1213c5",
      "evidence": "The document highlights PPG's underperformance compared to peers and the S&P.",
      "position": 0,
      "objective": "What is driving PPG's underperformance?",
      "structure": "Evidence A -> Evidence B -> Evidence C -> Pattern/Conclusion",
      "confidence": 0.7,
      "description": "Group multiple pieces of evidence that together point to a pattern or conclusion"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}