Acquisitions

Acquisitions

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 75 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.

Recent Acquisitions

During the third quarter of fiscal 2017, RPM has acquired five companies with combined annual sales of nearly $170 million. They included:

SPS Group, a Dutch decorative and specialty coatings company with annual net sales of approximately $60 million. Located about an hour south of Amsterdam in 's-Hertogenbosch, the Netherlands, SPS offers a complete line of topcoats for interior and exterior walls, primers, lacquers, floor and roof coatings, metal coatings, wood stains and finishes, plasters and more. It was acquired on December 21, 2016.

The foam division of Clayton Corporation, best known for its consumer polyurethane foam brand Touch 'N Foam. Based near St. Louis, Missouri, the division has annual net sales of approximately $60 million. It markets two low-pressure, spray-polyurethane foam brands, Touch 'N Foam for the consumer do-it-yourself market and Touch 'N Seal for the professional industrial market. It was acquired on January 3, 2017.

Prochem is a manufacturer of professional equipment and chemicals for cleaning and restoring carpet, upholstery and hard flooring surfaces. It was acquired on January 4, 2017. Based in Chandler, Arizona, Prochem has annual net sales of approximately $22 million.

On January 4, 2017, RPM also acquired 80 percent of Arnette Polymers, LLC, a manufacturer of specialty chemical raw materials. It specializes in resins, hardeners, curing agents and other intermediates for use in epoxy and polyurethane materials. Excluding sales to the several RPM subsidiaries it currently serves, Arnette Polymers has annual net sales of nearly $20 million.

Prime Resins is a manufacturer of specialty chemicals and equipment for infrastructure construction and repair. Headquartered in Conyers, Georgia, Prime Resins has annual net sales of approximately $7 million. It was acquired on January 17, 2017. Prime Resins' product line includes a broad range of polyurethane and epoxy grouts, foams, adhesives and coatings. They are primarily used for leak sealing, concrete structural repair, slab lifting and soil stabilization. Product applications include highways, roads, bridges, airport runways, sewage systems and retaining walls.

The Best Home for Entrepreneurial Companies

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.

 

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