PPG (NYSE: PPG) is acquiring MetoKote Corp., a Lima, Ohio, company that applies coatings to the parts of its customers. MetKote had sales of about $200 million in 2015, with more than 1,500 employees.

The target applies coatings at its customers’ manufacturing sites and at regional MetKote service centers in North America and Europe. For the service center business, customers ship the parts to MetKote and the company coats the parts and ships them to the customer’s next assembly stage. MetKote uses enhanced paint adhesion and paints with electrocoat, powder and liquid coatings. MetoKote coats more than 1.5 million parts per day.

Viktor Sekmakas, PPG executive vice president, says the deal will help his company better understand its own coatings customers, and meet their requirements. “We are responding to customers’ requests to streamline the purchasing, delivery and application of coatings by adding MetoKote’s capabilities to PPG.” Financial terms were not disclosed, but the deal is expected to close in the third quarter.

Pittsburgh-based PPG’s paints, coatings and materials business operates in more than 70 countries with annual net sales of $15.3 billion and a customer base that includes construction, consumer products, industrial and transportation companies.

The middle market has been a busy place for chemical company M&A in recent months. Larger mergers in the chemicals industry, such as the proposed merger of Dow Chemical Co. and DuPont Co., are creating opportunities for spinoffs and acquisitions for in coatings, adhesives and sealants. In May, Evonik Industries AG announced it was acquiring units from Air Products & Chemicals Inc. (NYSE: APD) to increases its U.S. market exposure in certain chemicals used for insulation, detergents and auto parts. Also in May, Maroon Group LLC, owned by CI Capital Partners, acquired U.S. Chemicals, supplier of acids, oxides and other chemicals. In April, Advent International reported it will acquire Viakem SA de CV, a manufacturer of chemicals used by the agricultural industry and for paints, plastics, fragrances, detergents and pharmaceuticals.

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