RPM Announces Acquisitions
MEDINA, OH – RPM International Inc. announced three new acquisitions. The company has acquired a manufacturer of commercial floor cleaning equipment and chemicals, a manufacturer of specialty chemical raw materials, and the foam division of Clayton Corp.
RPM’s Legend Brands business has acquired the Prochem business from the Kärcher North America Co. Inc. Prochem is a manufacturer of professional equipment and chemicals for cleaning and restoring carpet, upholstery and hard flooring surfaces. Based in Chandler, Arizona, Prochem has annual net sales of approximately $22 million.
Prochem’s equipment line includes truck-mounted and portable carpet, upholstery and hard surface cleaning machines, as well as a complete line of accessories. Prochem also manufactures professional-grade cleaning chemicals, including detergents, shampoos, spot and stain removers, and deodorizers. Its products are sold to professional cleaning contractors, primarily in North America.
“We expect the addition of Prochem, which will be integrated into Legend Brands’ current offering of professional cleaning products, to propel us into the leadership position in the professional cleaning market,” said Frank C. Sullivan, RPM Chairman and Chief Executive Officer. “There are a number of efficiencies to be gained by the combined businesses that we can leverage to the bottom line. Plus, we will be able to better serve customers as we now have cleaning chemical blending facilities on both the east and west coasts of the U.S.”
In addition, RPM acquired 80% of Arnette Polymers LLC, a manufacturer of specialty chemical raw materials. Excluding sales to the several RPM subsidiaries it currently serves, Arnette Polymers has annual net sales of nearly $20 million. It will operate as part of the RPM Performance Coatings Group.
Located in Richmond, Missouri, Arnette Polymers specializes in resins, hardeners, curing agents and other intermediates for use in epoxy and polyurethane materials. The company is a key supplier to major chemical producers, distributors and end-user formulators. It will continue to be run by company founders Jim and Micky Arnette and the existing management team.
“Arnette’s flexibility and ability to produce from pilot- to large-scale batches of both standard and niche materials has made it a key supplier for RPM subsidiaries over the last several years,” said Sullivan. “With a good working relationship already in place, we intend to leverage this acquisition to further expand advantages in cost, supply and product development within the RPM supply chain.”
The foam division of Clayton Corp., best known for its consumer polyurethane foam brand Touch 'N Foam, will be part of RPM’s DAP business. Based near St. Louis, Missouri, the division has annual net sales of approximately $60 million. 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,” said Sullivan. “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.”