RPM International’s new acquisition
On September 11, RPM International (RPM) announced that it acquired Nudura—a Canadian-based company. Nudura specializes in manufacturing and distributing insulated concrete forms. However, RPM International didn’t disclose the acquisition’s financial aspects. RPM International expects the acquisition to be included in its reporting system within one year.
Nudura has annual sales revenues of more than $40 million. The company has three manufacturing plants and a network of 260 distributors. Nudura also holds a few patented products that are sold to architects and design professionals.
RPM International is expected to integrate Nudura with its specialty products group and a stand-alone operating unit of RPM International’s Dryvit business. Frank C. Sullivan, RPM International’s chairman and CEO, said, “Nudura is an excellent strategic fit that offers several key competitive advantages for Dryvit. Its product line will complement and expand Dryvit’s existing product offering, allowing for enhanced cross-selling opportunities. At the same time, Nudura’s manufacturing footprint will be leveraged for efficiencies in the manufacturing of Dryvit’s NewBrick product, as well as products of other companies within our Specialty Products Group.”
RPM International’s stock price
RPM International stock gained 0.6% and closed at $67.39 for the week ending September 14. The gain in the stock price caused RPM International to trade 16.4% above the 100-day moving average price of $57.90. On a year-to-date basis, RPM International has gained 28.6%. At the same time, Sherwin-Williams (SHW) has gained 13.1%, while PPG Industries (PPG) and Axalta (AXTA) has declined 5.1% and 9.7%, respectively. RPM International’s 14-day relative strength index of 64 indicates that the stock isn’t overbought or oversold.
Investors can hold RPM International indirectly by investing in the First Trust Hedged BuyWrite Income ETF (FTLB). FTLB has invested 1.8% of its holdings in RPM International as of September 14.