RPM International buys Specialty Polymer Coatings
On September 12, 2016, RPM International (RPM) announced the acquisition of Specialty Polymer Coatings (or SPC). RPM noted that SPC would operate as an independent business within RPM’s Performance Coatings group and report through the Carboline Company. RPM did not disclose the terms of the acquisition.
However, RPM expects that SPC’s earnings will be aligned to its earnings within one year. This is RPM’s third acquisition for fiscal 2017, which ended on May 31, 2016.
In July 2016, RPM acquired Duram Industries, an Australian manufacturer of waterproofing products. RPM also acquired Applied Polymerics and Marketing Associates, a civil engineering and construction firm.
Specialty Polymer Coatings is a Canadian manufacturer of high-performance coatings for the global oil and gas pipeline market. SPC has annual net sales of $26 million.
The SPC product line is used for the construction and maintenance of tank linings, railway cars, steel structures, steel pipes, and marine applications. SPC is headquartered near Vancouver, in Langley, British Columbia. Its manufacturing facility is located in Brantford, Ontario, and its warehouse is located in Angleton, Texas.
RPM stock price
On September 16, 2016, RPM International closed at $51.68, down 0.13% for the week. On a year-to-date basis, RPM has risen 17.3%.
The PowerShares DWA Momentum ETF (PDP), which held 0.6% in RPM on September 16, fell 0.25% for the week and closed at $41.98. Among the fund’s other major holdings, Sherwin-Williams (SHW), Monster Beverage (MNST), and Amazon (AMZN) had respective weights of 1.6%, 1.4%, and 1.3% on September 16.