RPM International’s new acquisition
On March 19, 2018, RPM International (RPM) announced that it acquired Miracle Sealants Company through its Rust-Oleum Group. Miracle Sealants Company is RPM International’s first acquisition in 2018. In RPM International’s fiscal year, which is July 1 to June 30, Miracle Sealants Company is the third acquisition. RPM International didn’t disclose the financial aspects of the acquisition. RPM International expects to integrate into the company’s system within a year.
Miracle Sealants Company specializes in manufacturing sealers, cleaners, polishes, and other products for natural stone, ceramic, and porcelain. The company has annual net revenues of $25 million. Miracle Sealants Company has broad national distribution across the US. The company’s clients includes HomeDepot (HD), Lowe’s (LOW), and Menards.
Frank C. Sullivan, RPM International’s chairman and CEO, said, “Miracle Sealants is an excellent strategic fit that adds another platform within Rust-Oleum’s hard surface care product portfolio. Leveraging the Rust-Oleum global distribution, sales and marketing network will drive sales growth.”
RPM International’s stock price
RPM International declined 5.3% and closed at $47.0 for the week ending on March 23, 2018. The decline in RPM International’s stock price pushed it to trade 9.1% below the 100-day moving average price of $51.7, which indicates a downward trend in the stock. However, investors need to be cautious. RPM International’s 14-day relative strength index is at 30, which indicates that the stock has temporarily moved into an “oversold” situation. On a year-to-date basis, RPM International has declined 10.3%. PPG Industries (PPG) and Sherwin-Williams (SHW) have declined 6.3% and 5.3%, respectively.
To hold RPM International indirectly, investors could invest in the First Trust Hedged BuyWrite Income ETF (FTLB), which declined 2.6% for the week. FTLB has invested 1.3% of its portfolio in RPM International as of March 23, 2018.