YEAR ESTABLISHED: 1947
REVENUE: $4.8 billion
(2015: $4.594 billion)
Roofing systems; Caulks and sealants; Flooring systems; Corrosion control coatings; Primers-sealers; 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 2016 of $4.8 billion. The company employs approximately 13,000 people and has 120 facilities in 26 countries. In fiscal 2016, the company’s industrial products accounted for 51 percent of its total coating sales, consumer products represented 35 percent and specialty coatings represented 15 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 signed an agreement to acquire SPS Group, a Dutch decorative and specialty coatings company with annual net sales of approximately $60 million. Located about an hour south of Amsterdam, SPS will operate as part of RPM’s Rust-Oleum European business. Terms of the transaction were not disclosed. It is expected to be accretive to earnings within one year, excluding one-time costs.
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. Its major customers are large home center chains and builder merchants based in the Netherlands. Its products are used by painters, plasterers, industry and do-it-yourselfers.
“By leveraging the manufacturing and distribution strengths of SPS, we expect this acquisition to accelerate Rust-Oleum’s growth in the Netherlands and other nearby European countries,” stated Frank C. Sullivan, RPM chairman and chief executive officer. “It will also allow the existing customer base of SPS to benefit from Rust-Oleum technologies and innovations.”
RPM has a diverse portfolio with hundreds of brand name products, many of which hold the leadership position in terms of market share and sales in the markets they serve.
According to the company, brand leadership affords RPM’s operating companies a number of advantages, including the ability to command premium pricing, shorten sales cycles and gain repeat purchases due to brand loyalty. These benefits are what make brand leadership a key element in RPM’s growth strategy in its consumer, industrial and specialty segments.
RPM At a Glance
• Rust-Oleum: No. 1 brand recognition and market share position in the U.S. and Canada in the rust-preventative, decorative, specialty and professional segments of the small-project paint category
• Varathane: No. 1 market position in Canada and No. 2 in the U.S. offering interior wood stains, finishes, wood repair and maintenance products
• Zinsser: A leader in brand recognition and market share position in the U.S. market for specialty primers and sealers and wallcovering sundries
• Pettit: The global market leader in water-based antifouling paints for the marine industry
• Stonhard: No. 1 global supplier of industrial, high-performance polymer flooring systems
• Carboline: No. 1 U.S. supplier and a leading global supplier of industrial, high-performance corrosion control coatings
Fiscal 2017 Acquisitions:
• Duram Industries Pty Ltd., commercial waterproofing coatings
• Applied Polymerics Inc. and Marketing Associates Inc., construction coatings for infrastructure
• Specialty Polymer Coatings, Inc., high-performance coatings for the global oil and gas pipeline market
• Adhere Industrial Tapes Ltd., single- and double-sided foam tapes for construction
• SPS Group, consumer coatings, primers, stains and lacquers
• Clayton Corporation foam division, the Touch ‘n Foam consumer brand of spray-polyurethane foam products
• Prochem, equipment and chemicals for cleaning flooring surfaces
• Arnette Polymers LLC, resins for epoxy and polyurethane materials
• Prime Resins, polyurethane and epoxy grouts, foams, adhesives and coatings for infrastructure construction and repair