RPM Buys Into Arnette Polymers
RPM International Inc. (NYSE: RPM) of Medina is on a bit of a buying spree to start 2017.
The specialty coatings and sealants company announced late Wednesday, Jan. 4, that it has acquired two businesses — a manufacturer of commercial floor cleaning equipment and chemicals, and a manufacturer of specialty chemical raw materials — that have combined annual sales of about $42 million.
Terms of the transactions, which are expected to be accretive to earnings within one year, were not disclosed.
RPM said its Legend Brands business bought the Prochem business from Kärcher North America Co. Chandler, Ariz.-based Prochem makes professional equipment and chemicals for cleaning and restoring carpet, upholstery and hard flooring surfaces. Its annual sales are about $20 million.
In addition, RPM said it acquired 80% of Arnette Polymers LLC, a Richmond, Mo.-based maker of specialty chemical raw materials. Excluding sales to the several RPM subsidiaries it currently serves, Arnette Polymers has annual sales of about $20 million. It will operate as part of the RPM Performance Coatings Group.
Earlier this week, RPM announced it bought the foam division of Clayton Corp. for an undisclosed amount. The foam division, which will become part of RPM’s DAP business, is based near St. Louis and has annual sales of about $60 million.
On Thursday morning, Jan. 5, RPM reported a loss of $70.9 million, or 54 cents per share, for its fiscal 2017 second quarter ended Nov. 30, 2016. The company said the quarter’s results included a $188.3 million pre-tax impairment charge related to its Kirker consumer nail enamel business. On an after-tax basis, the charge was $129.2 million, or 97 cents per share.
The second quarter also included a charge of $12.3 million, or 9 cents per share, related to RPM’s decision to exit the Flowcrete polymer flooring business in the Middle East.
Sales of $1.19 billion were up 3% from the $1.16 billion reported in the like quarter a year ago.
RPM said it expects full-year earnings in the range of $2.62 to $2.72 per share.