MEDINA, Ohio, Jan. 4, 2017
/PRNewswire/ -- RPM International Inc. (NYSE: RPM) today
announced that it has acquired two businesses, a manufacturer of
commercial floor cleaning equipment and chemicals, and a
manufacturer of specialty chemical raw materials. The companies
have combined annual net sales of approximately $42 million. Terms of the transactions, which are
expected to be accretive to earnings within one year, were not
disclosed.
RPM's Legend Brands business has acquired the Prochem business
from the Kärcher North America Company, Inc. Prochem is a
manufacturer of professional equipment and chemicals for cleaning
and restoring carpet, upholstery and hard flooring surfaces. Based
in Chandler, Arizona, Prochem has
annual net sales of approximately $22
million.
Prochem's equipment line includes truck-mounted and portable
carpet, upholstery and hard surface cleaning machines, as well as a
complete line of accessories. Prochem also manufactures
professional-grade cleaning chemicals, including detergents,
shampoos, spot and stain removers, and deodorizers. Its products
are sold by distributors to professional cleaning contractors,
primarily in North America.
"We expect the addition of Prochem, which will be integrated
into Legend Brands' current offering of professional cleaning
products, to propel us into the leadership position in the
professional cleaning market," stated Frank
C. Sullivan, RPM chairman and chief executive officer.
"There are a number of efficiencies to be gained by the combined
businesses that we can leverage to the bottom line. Plus, we will
be able to better serve customers as we now have cleaning chemical
blending facilities on both the east and west coasts of the
U.S."
In addition, RPM acquired 80 percent of Arnette Polymers, LLC, a
manufacturer of specialty chemical raw materials. Excluding sales
to the several RPM subsidiaries it currently serves, Arnette
Polymers has annual net sales of nearly $20
million. It will operate as part of the RPM Performance
Coatings Group.
Located in Richmond, Missouri,
Arnette Polymers specializes in resins, hardeners, curing agents
and other intermediates for use in epoxy and polyurethane
materials. The company is a key supplier to major chemical
producers, distributors and end-user formulators. It will continue
to be run by company founders Jim and Micky
Arnette and the existing management team.
"Arnette's flexibility and ability to produce from pilot to
large scale batches of both standard and niche materials has made
it a key supplier for RPM subsidiaries over the last several
years," stated Sullivan. "With a good working relationship already
in place, we intend to leverage this acquisition to further expand
advantages in cost, supply and product development within the RPM
supply chain."
About RPM
RPM International Inc. owns subsidiaries
that are world leaders in specialty coatings, sealants, building
materials and related services across three segments. RPM's
industrial products include roofing systems, sealants, corrosion
control coatings, flooring coatings and other construction
chemicals. Industrial companies include Stonhard, Tremco, illbruck,
Carboline, Flowcrete, Euclid Chemical and RPM Belgium Vandex. RPM's
consumer products are used by professionals and do-it-yourselfers
for home maintenance and improvement and by hobbyists. Consumer
brands include Rust-Oleum, DAP, Zinsser, Varathane and Testors.
RPM's specialty products include industrial cleaners, colorants,
exterior finishes, specialty OEM coatings, edible coatings,
restoration services equipment and specialty glazes for the
pharmaceutical and food industries. Specialty segment companies
include Day-Glo, Dryvit, RPM Wood Finishes, Mantrose-Haeuser,
Legend Brands, Kop-Coat and TCI. Additional details can be found at
www.rpminc.com and by following RPM on Twitter at
www.twitter.com/RPMintl.
For more information, contact Barry M.
Slifstein, vice president – investor relations, at
330-273-5090 or bslifstein@rpminc.com.
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; 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, 2016, 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.
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SOURCE RPM International Inc.