YEAR ESTABLISHED: 1947
REVENUE: $4.594 billion s (2014: $4.4 billion)
• Roofing systems
• Caulks and sealants
• Flooring systems
• Corrosion control coatings
• Specialty paints
• Hobby and craft paints
• Wood stains and finishes
• Rust-preventative paints
Frank C. Sullivan, chairman and CEO; Ronald A. Rice, president and COO; Thomas Reed, Rust-Oleum Group; Terry Horan, DAP Group; Steve Knoop, Specialty Products Group; Paul Hoogenboom, Tremco Group; Reiner Eisenhut, Tremco Illbruck Group; David Reif, Performance Coatings Group.
RPM International Inc. is a multinational holding company with subsidiaries that manufacture and market high-performance coatings, sealants and specialty chemicals, primarily for maintenance, repair and improvement applications. RPM reported revenue for 2015 of $4.594 billion. The company employs approximately 13,000 people and has 116 facilities in 26 countries. In fiscal 2015, the company’s industrial products accounted for 65 percent of its total coating sales, with consumer products representing 35 percent. The Industrial segment’s operating groups include Tremco, Stonhard, Carboline and Tremco illbruck. The Specialty segment’s operating groups are Day-Glo, Dryvit, Mohawk and Petit.
The Consumer segment’s operating groups include Rust-Oleum Group, DAP, Varathane, Zinsser and Testors.
RPM has launched a number of new products this year. They include DAP Advanced Kitchen and DAP Kitchen, Bath and Plumbing High Performance Sealant, Varathane Matte Floor Finish Polyurethane, Neverwet Rain Repellant by Rust-Oleum, Zinsser Dryfall and Block Filler 2X, Zinsser Paint Booster and DAP All Purpose Adhesive.
RPM’s Rust-Oleum subsidiary has acquired Seal-Krete, a leading U.S. manufacturer of concrete care coatings and sealants for the retail market with annual net sales in excess of $10 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.
Seal-Krete, formerly a division of Clayton Valve, manufactures a complete line of priming, painting, sealing and finishing products for maintaining and decorating concrete, masonry, brick and pavers. Its products are sold primarily through home improvement centers, as well as through independent hardware and paint stores. Among its leading brands are Seal-Krete Original, Damplock, Epoxy-Seal and Clear-Seal.
RPM’s Mantrose-Haeuser Co., Inc. subsidiary within the RPM Specialty Products Group has acquired Holton Food Products Company, a leading U.S. supplier of food stabilizer and dry egg white products for the bakery and prepared food markets. Based in LaGrange, near Chicago, Illinois, Holton has annual net sales of $7 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.
Holton supplies high-strength dry egg white products, used with its food stabilizers, for small- or large-scale, high-speed production of meringue toppings, fillings, cookies, cakes, pies, and other dessert and entrée items. Holton’s products are primarily sold to large bakery and food companies to optimize appearance, texture, moisture control, production efficiency, freeze-thaw stability and shelf life. Ross, John and David Holton, sons of the founder, will stay on to run the business.
When it comes to acquisitions, RPM seeks either free-standing entrepreneurial companies or product lines with between $10 million and $300 million in annual sales. It targets companies that fit within its portfolio of specialty coatings businesses, can be integrated into an existing RPM platform, hold a market-leading position and generate strong profit margins.
RPM often retains the entrepreneurial management teams that made the companies it acquires successful in the first place. Today, more than one-third of RPM’s businesses are operated by the original founders or their second- or third-generation family members. Ror this reason, RPM is known as “the best home for entrepreneurial companies” in the industry.
Over the last 30 years, RPM has acquired more than 150 companies, approximately 70 of which have been during the past decade. RPM attributes its success rate to its reputation, experienced corporate development team and long courting process.
RPM supports rapid growth of its acquired companies by investing in them at a greater rate than they could when they were independent. It also connects newly acquired products and technologies to RPM’s worldwide distribution and supply chain network. these connections enable them to increase market penetration, improve efficiencies, share technologies and reduce costs.