Balance is a key factor behind RPM’s long-standing success – a balance between its industrial and consumer segments, supported by a diverse product mix primarily focused on maintenance and repair; a balance in its growth strategy, between its internal growth initiatives and a fine-tuned acquisition program; and a growing balance in the geographic markets it serves.

Balanced Structure

With nearly 50 business units selling distinct branded products into a wide variety of end-use markets, RPM’s structural balance between industrial and consumer businesses helps smooth the ebbs and flows of economic cycles.

RPM’s industrial businesses generate approximately 65 percent of the company’s annual revenue, and are made up of two types of product lines. The first has highly respected brands with a leading, but relatively small share of huge, fragmented global markets, providing virtually limitless growth opportunities. Examples include:

• Tremco roofing systems, ranging from traditional to photovoltaic and sustainable roofing, are used by institutions such as airports, hospitals, schools and universities where roofing integrity is a necessity;
• Tremco illbruck construction materials, including sealants, glazing and fireproofing products;
• Stonhard and Flowcrete polymer flooring systems, which provide decorative, cost-effective and functional flooring for industries such as food service, semiconductors, pharmaceutical, medical, entertainment and retail; and
• Carboline fireproofing and corrosion control coatings, which are used in the harshest environments. They protect coal power plants, water treatment facilities, petrochemical refineries, offshore oil platforms, bridges and marine vessels.

The other major category of industrial products typically has a dominant market share in a specialized niche market. They include:

• Dryvit Outsulation EIFS, the most energy-efficient commercial and residential cladding available. They offer the natural-looking beauty of stucco, brick, stone and more, often at a lower cost than traditional products;
• Pettit, Woolsey and Z-Spar pleasure marine coatings, including anti-foulants; and
• Day-Glo fluorescent colorants used in safety products, packaging and children’s toys.

The consumer side of the company produces the remaining 35 percent of revenue. Its products are sold in most major home centers, mass merchants and hardware retailers across the country. Plus, they’re found on nearly every garage or basement shelf in America. Leading brands include:

• Rust-Oleum small project paints for rust-preventative, decorative, specialty and general purposes;
• DAP caulks, sealants, construction adhesives, and patch and repair products;
• Zinsser primer-sealers and wallcovering preparation and removal products;
• Varathane interior wood stains and finishes;
• Wolman exterior wood care products for decks, fences, sheds and more; and
• Testor hobby, craft and toy products.

Many of RPM’s business units are still run by the original owner, founder or secondor third-generation family members. This guarantees that RPM leaders bring both expertise and passion to drive their organizations, which results in a winning culture that breeds growth. It is this entrepreneurial structure and approach that allow RPM to respond to changing market conditions and customer needs quickly. In the current economic environment, RPM’s smaller, more market-focused business units are an advantage, versus some of its larger, more integrated peers.