RPM, Inc. Completes Acquisition of Tremco Incorporated
MEDINA, Ohio, Feb. 3 /PRNewswire/ -- RPM, Inc. (Nasdaq: RPOW) announced
today that its acquisition of Tremco Incorporated, a BFGoodrich subsidiary,
has been completed for $230 million in cash.
Tremco, headquartered in Cleveland, manufactures sealants and coatings
sold primarily in building, construction, building maintenance and retail
markets. The acquired business had sales in 1995 of about $330 million.
Tremco's product lines are highly synergistic with a number of existing
RPM subsidiaries, including Mameco, in the sealants area; and Republic
Powdered Metals, RPM's founding company, in the roofing product line areas.
Additionally, there are a number of future opportunities for cooperation
between the retail product lines of Tremco and a number of RPM consumer
do-it-yourself companies, such as Rust-Oleum.
RPM anticipates re-paying approximately half of the purchase price paid
for Tremco through the divestiture of a number of Tremco and existing RPM
product lines. These divestitures and any resulting restructuring are
expected to be completed by December 31, 1997.
Jeffrey L. Korach will immediately become President of Tremco. Mr. Korach
has, for the last 12 years, been President of The Euclid Chemical Company, a
joint venture of RPM, Inc. and Holderbank. James L. Chessin, President of
Mameco International, Inc., an RPM wholly owned subsidiary, will join the
Tremco management team as Vice President and General Manager of the Sealants
Group. Richard E. Klar will become Chief Financial Officer of Tremco and
remain a Vice President of RPM. Mr. Klar has been on the RPM, Inc. management
team for the last 17 years, and prior to that was Chief Financial Officer of
Mameco International.
Tremco is expected to slightly dilute RPM's earnings for the quarter
ending February 28, 1997, and be neutral for the RPM fiscal year ending May
31, 1997. RPM anticipates that Tremco will be a strong contributor to sales
and earnings growth in the RPM 1998 fiscal year, which will begin June 1,
1997.
RPM, Inc. is a manufacturer of industrial coatings and sealants for
waterproofing and general maintenance, corrosion control and other specialty
chemical applications. RPM also manufactures do-it-yourself products for home
maintenance, automotive repair, consumer hobby, leisure and marine markets.
The fiscal year ended May 31, 1996 was RPM's 49th consecutive record year of
sales, earnings and earnings per share, with sales of $1.1 billion, net
earnings of $68.9 million and earnings per share of $.90. RPM shares are
traded on the Nasdaq Stock Market.
SOURCE RPM, Inc.
CONTACT: Thomas C. Sullivan or James A. Karman of RPM, 330-273-5090 |
