Acquisitions are a key element of RPM’s overall growth strategy. The company actively pursues acquisitions of free-standing entrepreneurial companies and product lines that complement its portfolio of specialty coatings and sealants businesses. Over the last 30 years, RPM has completed more than 150 acquisitions, with 70 of these transactions being completed during the last decade.
RPM creates shareholder value by attracting successful entrepreneurial companies and applying a disciplined approach to investing in their continued growth.
During the first quarter of fiscal 2016, RPM has acquired two companies with combined annual sales of approximately $20 million. They included:
Duram Industries Pty Limited, an Australian-based manufacturer of a comprehensive range of commercial waterproofing products, which was acquired by our Tremco Group on July 5, 2016. With annual sales of approximately $6 million, Duram will provide Tremco with in-market manufacturing capacity, while Tremco intends to leverage the combined resources to expand the reach of Duram products throughout Australia.
Applied Polymerics, Inc. & Marketing Associates, Inc. (API/MAI), a specialist civil engineering and construction organization focusing on bridges, roads and major structures, which was acquired July 7, 2016, to be part of RPM Performance Coatings Group’s Universal Sealants (U.K.) Limited (USL) business unit. Based in Mt. Airy, North Carolina, API/MAI has annual sales of approximately $14 million. The company manufactures, supplies and installs specialty construction products, including bridge expansion joints, concrete repair compounds, protective coatings and pavement preservation products.
RPM’s acquisition philosophy, initiated by Thomas C. Sullivan, who ran RPM from 1971 until 2002 and retired from the board in 2016, is to “Seek good companies. Create an atmosphere where the founders and managers stay with their companies. Then, get out of their way.”
This entrepreneurial culture has been a key attraction to business owners in the industry as demonstrated by the fact that today the majority of RPM’s operating companies are managed by their founders, second- or third-generation family members or the managers they trusted to lead their companies. For this reason, RPM is considered to be the “best home for entrepreneurial companies” in the industry.
RPM International Inc. (NYSE: RPM) owns subsidiaries that are world leaders in coatings, sealants, building materials and related services. From homes to precious landmarks worldwide, their brands are trusted by consumers and professionals alike to protect, improve and beautify. Among its leading consumer brands include Rust-Oleum, DAP and Zinsser. Learn more about RPM brands >>
RPM is a compelling long-term investment.
The percent by which RPM's 10-year total return has bested the S&P 500. More reasons >>
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