uploads///Part CHEM RPM

RPM International Acquired Siamons International


Dec. 26 2018, Updated 9:35 a.m. ET

RPM International acquired Siamons International

On December 17, RPM International (RPM) announced that its Rust-Oleum Group acquired Siamons International. RPM International didn’t disclose the financial aspects of the takeover. RPM International said that the earnings would be reflected in its book within a year.

Siamons International is a Canadian-based company with annual net sales of $20 million. Siamons owns the Concrobium brand, which offers a wide range of non-toxic specialty mold cleaners. The Concrobium brand products are sold at Home Depot (HD) and Lowe’s (LOW).

Article continues below advertisement

The acquisition will help RPM International take the Concrobium brand internationally, which could drive RPM International’s revenue growth by capturing new markets. Frank C. Sullivan, RPM International’s chairman and CEO, said, “The Concrobium brand is an excellent strategic fit that will expand Rust-Oleum’s specialty cleaning product portfolio, complementing its existing Krud Kutter, Mean Green, Roto-Rooter, Whink, Jomax and Moldex brands and resulting in significant cost synergies and enhanced supply chain efficiencies. The addition of Concrobium will greatly enhance Rust-Oleum’s ability to offer a one-stop shopping solution to its retail partners, ultimately making it a leader in the specialty cleaning market.”

RPM International’s stock price

Despite the positive development, RPM International stock declined 3.4%% and closed at $58.38 for the week ending December 21. The decline in the stock price caused RPM International to trade 7.9% below the 100-day moving average price of $63.39. On a year-to-date basis, RPM International has gained 11.4%. At the same time, Sherwin-Williams (SHW), PPG Industries (PPG), and Axalta (AXTA) have declined 8.2%, 17.5%, and 30.9%, respectively. RPM International’s 14-day relative strength index of 32 indicates that the stock is close to being oversold. Investors should be cautious since there could be some bounce back.

Investors could hold RPM International indirectly by investing in the First Trust Dorsey Wright Momentum & Dividend ETF (FXZ). FXZ has invested 3.1% of its holdings in RPM International as of December 21.


More From Market Realist

  • MP Materials mine
    Basic Materials
    MP Materials (MP) Is an Attractive Play on Rare Earths
  • Woman looking at data
    Basic Materials
    Should You Buy SLV Stock Before Another Silver Short Squeeze?
  • Freeport-McMoRan employee at a facility
    Basic Materials
    FCX Stock Is a Good Buy for Investors as Copper Prices Top $10,000
  • Alcoa logo
    Basic Materials
    Alcoa (AA) or CENX: Picking the Best Aluminum Stock
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.