MEDINA, Ohio—RPM International Inc. is off to a busy start in 2017, making its second and third acquisitions of the new year.
The firm has acquired 80 percent of Arnett Polymers L.L.C., a Richmond, Mo.-based producer of specialty chemical raw materials—such as resins, hardeners, curing agents and other intermediates for use in epoxy and polyurethane materials.
And, through its Legend Brands business, RPM will acquire the Prochem business from Karcher North America Co. Inc. Based in Chandler, Ariz., Prochem produces professional equipment and chemicals for cleaning and restoring carpet, upholstery, and hard flooring surfaces.
Financial terms of the deals were not disclosed, however RPM said the two companies have combined annual net sales of about $42 million. RPM said Arnette will continue to be run by founders Jim and Micky Arnette, along with the existing management team, adding that Arnette has been a key supplier for many of its subsidiaries for the last several years.
"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," Frank C. Sullivan, RPM chairman and CEO, said in a statement.
"We expect the addition of Prochem to propel us into the leadership position in the professional cleaning market. 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."
The moves come on the heels of RPM's Jan. 3 acquisition of Clayton Corp.'s foam division, which markets low-pressure spray polyurethane foam under two primary brands—Touch 'N Foam for the consumer do-it-yourself market and Touch 'N Seal for the professional industrial market. Based near St. Louis, RPM said the division reported annual net sales of about $60 million. Financial terms were not disclosed.
RPM owns subsidiaries that are leaders in the specialty coatings, sealants, building materials and related services across three segments. Portfolio companies include Stonhard, Tremco, Illbruck, Carboline, Flowcrete, Euclid Chemical and RPM Belgium Vandex.