Commences Mandatory Offer for up to 20% of Kemrock Shares
MEDINA, Ohio, May 13, 2011 /PRNewswire via COMTEX/ --
RPM International Inc. (NYSE: RPM) announced today that it has agreed to increase its minority ownership interest in Kemrock Industries and Exports Ltd., a fully integrated fiberglass reinforced plastic composites manufacturer with more than $200 million in annual sales located in Vadodara, Gujarat State, India, from approximately 14.9% to 15.1%. As a result of this agreement to increase its ownership interest above 15%, RPM is required under Indian law to commence a public offer for up to an additional 20% of the outstanding shares of Kemrock.
RPM's increased ownership of Kemrock signals its continued support and confidence in the company and its management, led by Kemrock's founder and managing director, Kalpesh Patel, and further solidifies RPM's position as a long-term investor in Kemrock.
"We've had a long-standing partnership with RPM and we welcome this additional investment as a means to further our business relationship," stated Patel.
Traded on the Bombay Stock Exchange Ltd. and the National Stock Exchange of India Ltd., Kemrock is India's largest composite exporter, with its products sold in more than 50 countries worldwide. It manufactures pultruded profiles; gratings; windmill blades; thermosetting resins; rail coach interiors and exteriors; cable management, piping and access systems; lighting poles and carbon fiber.
"As we envisioned when we made our initial investment in Kemrock in 2006, it has been a key strategic business partner for RPM in India," stated Frank C. Sullivan, RPM chairman and chief executive officer. "Kemrock has provided us with a platform that we have leveraged to increase our presence in the rapidly growing Indian marketplace and vibrant Asia-Pacific region. We expect that this relationship will only continue to flourish."
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, Euco, Flowcrete and Universal Sealants. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement 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 Robert L. Matejka, senior vice president 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) global markets and 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; (j) risks and uncertainties associated with the SPHC bankruptcy proceedings; and (k) 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, 2010, 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.
SOURCE RPM International Inc.