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RPM International Acquires Whink Products

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RPM International acquires Whink Products

On December 4, 2017, RPM International (RPM) announced that it has acquired Whink Products via its business group Rust-Oleum. Whink Products is an Iowa-based company situated in Eldora. The company manufactures and markets specialty cleaners and is a leader in the rust stain removal segment. Whink Products’ well-known brands include Rust Stain Remover and Rust Guard.

Whink’s products are used in carpet and laundry stain removers,  cleaning cooktops, and mineral deposit removers. Whink had annual sales of approximately $6 million. However, RPM did not disclose the financial aspects of the transactions. This is RPM’s second acquisition in two months.

Frank C. Sullivan, RPM’s chair and CEO, said, “In addition to providing us with the leading brand in the rust stain removal segment, Whink will also accelerate our expansion into other indoor cleaning solutions, adding a breadth of offerings to our rapidly growing Krud Kutter program. We welcome the Whink team to the RPM family of entrepreneurial specialty chemical companies.”

Stock update

RPM stock rose 2.1% on this news and closed at $53.56 for the week ended December 8, 2017. The stock traded 4.5% above its 100-day moving average price of $51.27, indicating an upward trend in the stock. On a year-to-date basis, the stock has fallen 1.2%, while its peers PPG Industries (PPG), Sherwin-Williams (SHW), and Axalta (AXTA) have gained 21.7%, 48.9%, and 17.2%, respectively. RPM’s relative strength index of 61 indicates that the stock is neither overbought nor oversold.

Investors who want to hold RPM indirectly can invest in the PowerShares DWA Basic Materials Momentum Portfolio (PYZ), which has invested 1.3% of its portfolio in RPM International as of December 8, 2017.

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