Toronto, Ontario -- In this week's Tuesday Ticker, a Midwestern industrial equipment provider takes a stand against the Trump Administration, consolidation continues in the automotive paint sector and a major auto parts provider considers selling.
Civic Duty
Many major Minnesota employers have been pulled into a public dispute after deadly incidents involving federal immigration enforcement agents in Minneapolis, including industrial equipment manufacturer 3M.
On January 25, the company's chief executive officer, William Brown, signed a public letter alongside more than 60 other Minnesota-based CEOs. It called for “peace and focused cooperation” following two fatal shootings.
Those killings were carried out by United States Immigration and Customs Enforcement agents involved in a broader enforcement push ordered by the Trump administration. The letter said the violence and disruption were affecting employees, businesses and communities. It urged federal, state and local officials to work together to de-escalate tensions.
The letter was also signed by executives from Target, Best Buy, General Mills and UnitedHealth Group.
The response was not universally positive. Several conservative commentators and pro-Trump activists criticized it, with many saying business leaders should not interfere with federal law enforcement.
Despite the reaction, shares of 3M remained flat as trading resumed on January 26.
More Than Coating
A coatings supplier is expanding its role in the collision repair sector.
On January 19, PPG Industries, a Pittsburgh-based coatings manufacturer, completed its acquisition of EMM International, which is based in the Netherlands.
The newly acquired business makes paint application tools and consumables for the collision repair sector. Its products include spray cups, masking systems and surface preparation equipment used in collision repair facilities.
In its closing announcement, PPG officials said the acquisition strengthens the company's ability to serve customers across more stages of the refinishing process. The market reacted positively to the acquisition, with PPG shares rising from US$110.22 on Jan. 19 to US$112.29 on Jan. 25.
Parts on the Table
One of the largest auto parts suppliers in the world is conducting a review of its operations.
The board of LKQ Corp., a Chicago-based distributor of recycled and aftermarket equipment, is launching a strategic review of the company intended to “enhance shareholder value.”
In a statement, board chair John Mendel said the process is intended to unlock value not reflected in the company’s share price. “Consistent with our commitment to maximizing shareholder value, the board has initiated a comprehensive review of strategic alternatives to identify the best path forward,” Mendel said.
The review will consider several strategic approaches, including a potential sale of the company and of individual business units. According to a press release, the review has no deadline.
Investors welcomed the announcement. LKQ shares rose from about US$32.70 on Jan. 20 to about US$33.50 on Jan. 25.
