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    Breaking News

    RPM Acquires Two Companies with Combined Annual Net Sales of $42 Million

    ...

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    • RPM Reports Fiscal 2017 Second-Quarter Results
    01.05.17
    RPM International Inc. has 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.”
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