Profile: RPM International Inc. (RPM)

RPM International Inc. (RPM), through its subsidiaries, manufactures, markets and sells various specialty chemical product lines, including specialty paints, protective coatings, roofing systems, sealants and adhesives, focusing on the maintenance and improvement needs of both the industrial and consumer markets. The Company’s family of products includes those marketed under brand names, such as Carboline, DAP, Day-Glo, Dryvit, EUCO, Fibergrate, Flecto, illbruck, Rust-Oleum, Stonhard, Tremco, Watco and Zinsser. RPM’s business is divided into two segments: the consumer segment and the industrial segment. The industrial segment (Tremco Group, StonCor Group and RPM II/Industrial), which comprises approximately 67% of the Company’s total net sales, includes maintenance and protection products for roofing and waterproofing systems, flooring, corrosion control and other specialty applications. The consumer segment (Rust-Oleum/Zinsser Group, DAP Group and RPM II/Consumer) comprises approximately 33% of the Company’s total net sales, and includes rust-preventative, special-purpose and decorative paints, caulks, sealants, primers and other branded consumer products. In September 2009, the Company announced that its Stonhard subsidiary, part of RPM's Performance Coatings Group, has acquired Ascoat Contracting Pty Ltd. and Ascoat Pty Ltd, a supplier and installer of polymer flooring systems.

In April 2009, the Company’s subsidiary, Tremco Incorporated, acquired Canam Building Envelope Specialists Inc. (Canam), including its Zerodraft weatherproofing division. During the fiscal year ended May 31, 2009 (fiscal 2009), the Company completed four acquisitions, all of which report through its industrial reportable segment. The acquired product lines and assets included a distributor of flooring and joint sealants based in Switzerland; a contractor for insulation and air leakage control based in Canada; an industrial and commercial flooring products company based in South Africa, and various tangible and intangible assets related to construction-type metering equipment. As of May 31, 2009, RPM’s subsidiaries marketed products in 147 countries and territories, and operated manufacturing facilities in approximately 92 locations in the United States, Argentina, Belgium, Canada, China, Colombia, the Czech Republic, France, Germany, Italy, Malaysia, Mexico, the Netherlands, New Zealand, Norway, Poland, South Africa, Sweden, the United Arab Emirates and the United Kingdom. Approximately 37% of its sales are generated in international markets through a combination of exports and direct sales in foreign countries.

Industrial Segment

The industrial segment products are sold throughout North America and also account for the majority of RPM’s international sales. Its industrial product lines are sold directly to contractors, distributors and end users, such as owners of industrial manufacturing facilities, public institutions and other commercial customers. Tremco Group’s products include sealants and institutional roofing systems used in building protection, maintenance and weatherproofing applications marketed under its Tremco, Republic, Vulkem and Dymeric brand names; basement waterproofing sealants marketed under its Tuff-N-Dri and Watchdog Waterproofing brand names, and specialized roofing maintenance and related services marketed under its Weatherproofing Technologies brand name; specialty adhesives and sealants marketed under its Compacta and Pactan brand names, and concrete and masonry additives and related construction chemicals marketed under the Company’s EUCO, Increte and Tamms brand names. Tremco Group also offers joint sealing tapes, flashing tapes, cartridge sealants and adhesives, strips, foils and accessories marketed under its illbruck, Festix, Perennator and Coco brand names.

StonCor Group’s products include polymer flooring systems for industrial, institutional and commercial facility floor surfaces marketed under the Stonhard brand name; industrial and commercial tile systems marketed under its Lock-Tile and Ecoloc brand names; fiberglass reinforced plastic gratings and shapes used for industrial platforms, staircases and walkways marketed under its Fibergrate, Chemgrate, Corgrate and Safe-T-Span brand names, and heavy-duty, corrosion-control coatings, fireproofing products and containment linings for a variety of industrial infrastructure applications marketed under its Carboline, Nullifire, A/D Fire, Nu-Chem and Plasite brand names. RPM II/Industrial Group’s products include exterior insulating finishing systems, including textured finish coats, sealers and variegated-aggregate finishes marketed under the Dryvit brand name; a variety of products for specialized applications, including powder coatings for exterior and interior applications marketed under its TCI brand name; fluorescent colorants and pigments marketed under its Day-Glo, Radiant and Dane Color brand names; commercial carpet and floor cleaning solutions marketed under the Chemspec brand name; fuel additives marketed under its Valvtect brand name; wood treatments marketed under the Kop-Coat and Tru-Core brand names; pleasure marine coatings marketed under the Pettit, Woolsey and Z-Spar brand names; waterproofing and flooring products marketed under its RPM Belgium brand names, and waterproofing and concrete repair products marketed under the Vandex brand name.

Consumer Segment

The consumer segment manufactures and markets professional use and do-it-yourself (DIY) products for a variety of mainly consumer applications, including home improvement and personal leisure activities. The consumer segment’s major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe. Consumer segment products are sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops and to other smaller customers through distributors.

Rust-Oleum/Zinsser Group’s products include a line of coating products to protect and decorate a variety of surfaces for the DIY and professional markets, which are sold under several key Rust-Oleum brand names, including Stops Rust, American Accents, Painter’s Touch, Specialty, Professional, Tremclad, Universal, Varathane, Watco, Epoxy Shield, Industrial Choice, Labor Saver, Road Warrior, Sierra Performance, Hard Hat, Mathys, CombiColor, Noxyde and Blackfriar. In addition, Rust-Oleum-branded products in Canada are marketed under the Mono and Tremclad brand names. Its products also include a line of specialty products for paint contractors and the DIY market for applications that include surface preparation, mold and mildew prevention, wallpaper removal and application, and waterproofing, under its Zinsser, B-I-N, Bulls Eye 1-2-3, Cover-Stain, DIF, FastPrime, Sealcoat, Jomax, Gardz, Perma White, Shieldz, Watertite, Okon, Parks, Papertiger and Walworks brand names; deck and fence restoration products marketed by its Wolman Wood Care Products business; metallic and faux finish coatings marketed under its Modern Masters brand name, and an assortment of other products, including hobby paints and cements marketed under its Testors brand name.

DAP Group’s products include a line of caulks, sealants, adhesives, insulating foam, spackling, glazing, and other general patch and repair products for home improvement and construction marketed through an assortment of DAP-branded products, including ’33’, ’1012’, 2000, 4000, 7000, Alex, Alex Fast Dry, Alex Plus, Alex Ultra, Beats The Nail, Blend Stick, Blockade, Butyl-Flex, Caulk-Be-Gone, Crack Shot, Custom Patch, DAPtex, DAPtex Plus, DryDex, Dynaflex 230, Easy Solutions, Elastopatch, Fast ’N Final, Kwik Foam, Kwik Seal, Kwik Seal Plus, One Stik2, Patch Stick, Painter’s Putty ’53’, Patch-N-Paint, Plastic Wood, Presto Patch, Quick Plug, Rely-On, Seal ’N Peel, SIDE Winder, StikARounds, StrongStik, Weldwood, and Phenoseal, which is a brand of Gloucester Company Inc., a subsidiary of DAP Products Inc. RPM II/Consumer Group’s products include wood furniture finishes and touch-up products marketed under its CCI, Mohawk, Chemical Coatings, Behlen and Westfield Coatings brand names, and shellac-based specialty coatings for industrial and pharmaceutical uses, edible glazes and food coatings marketed under its Mantrose-Haeuser and NatureSeal brand names.