Ascoat acquisition to strengthen position in Australia and provide springboard for further Asian market penetration
MEDINA, Ohio, Sept. 23 /PRNewswire-FirstCall/ -- RPM International Inc. (NYSE: RPM), a worldwide specialty coatings and building materials and services holding company, today announced that its Stonhard subsidiary, part of RPM's Performance Coatings Group, has acquired Ascoat Contracting Pty Ltd and Ascoat Pty Ltd, a supplier and installer of polymer flooring systems. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.
Based in Melbourne, Victoria, Australia, and with annual sales of approximately $5 million, Ascoat has been Stonhard's exclusive Australian distributor since 1996. Founded in 1988, Ascoat will continue to be led by its existing owners, John Black and Terry Callaghan.
Ascoat serves primarily industrial markets, with a focus on food processing, pharmaceutical and general manufacturing. Ascoat's capabilities include turnkey contracting, floor care services, consultation, specification, installation and warranties.
"We see this acquisition as a near-term opportunity to broaden the base of our Stonhard business throughout Australia given Ascoat's strong base in Victoria," stated Frank C. Sullivan, RPM chairman and chief executive officer. "This will also give our Performance Coatings Group a strategic platform for further penetration of the Asia-Pacific region."
RPM International Inc., a holding company, owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services serving both industrial and consumer markets. RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Day-Glo, Euco and Dryvit. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement, boat repair and maintenance, and by hobbyists. Consumer brands include Zinsser, Rust-Oleum, DAP, Varathane and Testors. Additional details are available at www.rpminc.com.
For more information, contact P. Kelly Tompkins, executive vice president - administration and chief financial officer, at 330-273-5090 or firstname.lastname@example.org.
This press release contains "forward-looking statements" relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us, and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) risks related to the adequacy of our contingent liability reserves, including for asbestos-related claims; and (j) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2009, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
P. Kelly Tompkins, executive vice president - administration and chief financial officer of RPM International Inc., +1-330-273-5090, email@example.com