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RPM International expands with French acquisition

Published 10/31/2024, 07:00 PM
RPM
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MEDINA, Ohio - RPM International Inc. (NYSE: NYSE:RPM), a leader in specialty coatings and building materials, announced the acquisition of TMP Convert SAS, a French manufacturer known for its outdoor design and landscape products. TMP Convert SAS, which operates under the JOUPLAST® and OCAPE® brands, will become part of RPM's Performance Coatings Group, joining its Fibergrate Structures business.

TMP Convert SAS, with annual net sales of roughly €35 million, enhances RPM's product portfolio, adding adjustable and fixed pedestals and accessories for flooring and roofing applications. These products align with Fibergrate's Bison business, which offers composite adjustable pedestals and decking solutions. The acquisition aims to extend RPM's global reach in decking and landscaping solutions, with a focus on sustainability through the use of recycled materials in manufacturing.

Thierry Convert, president of TMP Convert SAS, is set to continue leading the company, collaborating with Bison and the Performance Coatings Group to drive further growth. The financial terms of the transaction have not been disclosed.

RPM's chairman and CEO, Frank C. Sullivan, emphasized the strategic fit of the acquisition, stating it will expand the company's offerings of durable, easy-to-install, and low-maintenance products. He also highlighted the move as a step forward in RPM's "Building a Better World" sustainability program.

RPM International Inc. is a Fortune 500 company with a diverse portfolio of leading brands, including Rust-Oleum, DAP, and Zinsser, and employs approximately 17,200 people worldwide. The company's subsidiaries are recognized globally in specialty coatings, sealants, and related services, with operations spanning consumer, construction products, performance coatings, and specialty products segments.

The information in this article is based on a press release statement. RPM International Inc. has not provided further details on the acquisition's impact on its financial position or market strategy. Investors are advised to consider the company's recent filings with the Securities and Exchange Commission for a comprehensive understanding of the associated risks and uncertainties.

In other recent news, RPM International Inc. has witnessed several key developments. The company has announced a change in its legal department leadership, with Tracy D. Crandall taking over as vice president, general counsel, and chief compliance officer from Edward W. Moore who plans to retire by the end of 2024. RPM also reported a 10.9% increase in its quarterly cash dividend to $0.51 per share, marking the 51st consecutive year of dividend raises.

In its fiscal first quarter 2025 results, RPM International reported a 2.1% decline in sales, but a 12.2% rise in adjusted EPS to $1.84, marking the 11th consecutive quarter of record adjusted EBIT. The company also repaid $75 million in debt, reducing interest expenses. RPM's MAP 2025 initiative is on track to achieve $465 million in savings by May 2025, and the company plans to continue $50 million in annual share repurchases.

Despite external challenges such as Hurricane Helene and foreign exchange headwinds, RPM International's strategic initiatives and operational efficiencies have positioned it for future growth. The company's full-year guidance remains steady with low single-digit sales growth and mid-single-digit adjusted EBIT increases. These recent developments highlight RPM International's resilience and strategic focus.

InvestingPro Insights

RPM International's acquisition of TMP Convert SAS aligns with the company's strong financial position and growth strategy. According to InvestingPro data, RPM boasts a market capitalization of $16.49 billion and has demonstrated solid financial performance with a revenue of $7.29 billion in the last twelve months as of Q1 2023. This acquisition is poised to further strengthen RPM's market position and potentially contribute to its revenue growth.

InvestingPro Tips highlight RPM's financial stability and shareholder-friendly policies. The company has maintained dividend payments for an impressive 52 consecutive years and has raised its dividend for 11 consecutive years. This consistent dividend history underscores RPM's commitment to returning value to shareholders, which may be particularly appealing to investors seeking stable income streams.

Moreover, RPM's stock is currently trading near its 52-week high, with a one-year price total return of 42.69% as of the latest data. This performance suggests strong investor confidence in the company's strategic decisions, including acquisitions like TMP Convert SAS.

For investors interested in a deeper analysis, InvestingPro offers additional tips and insights. Currently, there are 7 more InvestingPro Tips available for RPM, providing a comprehensive view of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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