RPM Acquires Clayton Corp
RPM Acquires Consumer Foam Brand Touch ‘N Foam
MEDINA, Ohio, Jan. 3, 2017 /PRNewswire/ — RPM International Inc. (NYSE: RPM) today announced that it has acquired the foam division of Clayton Corporation, best known for its consumer polyurethane foam brand Touch ‘N Foam, to be part of its DAP business. Based near St. Louis, Missouri, the foam division of Clayton Corporation has annual net sales of approximately $60 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.
The company markets two low-pressure, spray-polyurethane foam brands, Touch ‘N Foam for the consumer do-it-yourself market and Touch ‘N Seal for the professional industrial market. They are used around homes, buildings and other structures to eliminate air leaks and drafts, seal gaps and cracks, and insulate against the elements. These brands primarily serve the North American market. The acquired product range will be marketed as part of the overall DAP product portfolio, which includes caulks and sealants, construction adhesives, general purpose adhesives, and other patch and repair products.
“The addition of Touch ‘N Foam polyurethane expands DAP’s product coverage, while providing a cost-effective U.S. manufacturing and technology platform,” stated Frank C. Sullivan, RPM chairman and chief executive officer. “We intend to harness DAP’s category management and marketing expertise to improve Touch ‘N Foam’s placement and market impact. At the same time, we will leverage the Touch ‘N Foam sales organization to aggressively market DAP core products into new channels and accounts.”
RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services across three segments. RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and other construction chemicals. Industrial companies include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Euclid Chemical and RPM Belgium Vandex. RPM’s consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Rust-Oleum, DAP, Zinsser, Varathane and Testors. RPM’s specialty products include industrial cleaners, colorants, exterior finishes, specialty OEM coatings, edible coatings, restoration services equipment and specialty glazes for the pharmaceutical and food industries. Specialty segment companies include Day-Glo, Dryvit, RPM Wood Finishes, Mantrose-Haeuser, Legend Brands, Kop-Coat and TCI. Additional details can be found at www.rpminc.com and by following RPM on Twitter at www.twitter.com/RPMintl.
For more information, contact Barry M. Slifstein, vice president – investor relations, at 330-273-5090 or email@example.com.
This press release contains “forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us, and are subject to uncertainties and factors (including those specified below) which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and capacity of raw materials, including assorted pigments, resins, solvents and other natural gas- and oil-based materials; packaging, including plastic containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) risks related to the adequacy of our contingent liability reserves; and (j) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2016, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
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