RPM Acquires Raised Flooring Systems Manufacturer

Rhea-AI Summary

RPM International Inc. (NYSE: RPM) announced the acquisition of Bison Innovative Products, a leading manufacturer of raised flooring systems with annual net sales of approximately $26 million. The deal is expected to be accretive to earnings within a year. Bison's adjustable polypropylene pedestals support various architectural finishes and are used in multiple applications, including rooftop decks and terraces. Frank C. Sullivan, RPM’s CEO, highlighted the unique product line and growth potential, aiming to enhance distribution and market penetration.

Positive

• Acquisition of Bison Innovative Products, enhancing RPM's product offerings.
• Bison has a unique product line and track record of growth.
• Expected to be accretive to earnings within one year.
• Synergies anticipated with RPM's Fibergrate business.
• Strengthening of Bison's distribution base for market expansion.

Negative

• None.

RPM International Inc. (NYSE: RPM) today announced that its Fibergrate Composite Structures Inc. business has acquired Bison Innovative Products, a leading manufacturer of raised flooring systems. Headquartered in Denver, Colorado, Bison has annual net sales of approximately $26 million. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.

Bison Pedestals (Photo: Business Wire)

Bison’s flooring systems consist of adjustable polypropylene pedestals that support tiles with architectural finishes such as wood, stone or artificial turf. Its products are used for rooftop decks, plazas, terraces, pop-up-parks and other architectural features requiring maintenance-free pedestals and low maintenance deck surfaces. The company’s products are manufactured in the U.S. and distributed across North America. Bison will become part of RPM’s Fibergrate business, which is a global manufacturer of fiberglass-reinforced plastic solutions for industrial and commercial applications.

“The Bison business checks the box on the key characteristics we look for in an acquisition. It has a unique, market-leading product line; track record of impressive top- and bottom-line growth; and synergies with our other businesses that will enable us to accelerate that growth. Plus, it has a strong management team led by Lisa von Gunten and Matt McClaugherty who are staying on to run the business,” stated Frank C. Sullivan, RPM chairman and CEO. “Through this transaction, we plan to enhance Bison’s distribution base, allowing the business to enter new geographies and markets. At the same time, we expect to leverage its connections to achieve greater penetration of Fibergrate’s products.”

About RPM

RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services. The company operates across four reportable segments: consumer, construction products, performance coatings and specialty products. RPM has a diverse portfolio with hundreds of market-leading brands, including Rust-Oleum, DAP, Zinsser, Varathane, Day-Glo, Legend Brands, Stonhard, Carboline, Tremco and Dryvit. From homes and workplaces, to infrastructure and precious landmarks, RPM’s brands are trusted by consumers and professionals alike to help build a better world. The company employs approximately 14,600 individuals worldwide. Visit www.RPMinc.com to learn more.

For more information, contact Russell L. Gordon, vice president and chief financial officer, at 330-273-5090 or rgordon@rpminc.com.

Forward-Looking Statements

This press release contains “forward-looking statements” relating to our business. These forward-looking statements, or other statements made by us, are made based on our expectations and beliefs concerning future events impacting us and are subject to uncertainties and factors (including those specified below), which are difficult to predict and, in many instances, are beyond our control. As a result, our actual results could differ materially from those expressed in or implied by any such forward-looking statements. These uncertainties and factors include (a) global markets and general economic conditions, including uncertainties surrounding the volatility in financial markets, the availability of capital and the effect of changes in interest rates, and the viability of banks and other financial institutions; (b) the prices, supply and capacity of raw materials, including assorted pigments, resins, solvents, and other natural gas- and oil-based materials; packaging, including plastic and metal containers; and transportation services, including fuel surcharges; (c) continued growth in demand for our products; (d) legal, environmental and litigation risks inherent in our construction and chemicals businesses and risks related to the adequacy of our insurance coverage for such matters; (e) the effect of changes in interest rates; (f) the effect of fluctuations in currency exchange rates upon our foreign operations; (g) the effect of non-currency risks of investing in and conducting operations in foreign countries, including those relating to domestic and international political, social, economic and regulatory factors; (h) risks and uncertainties associated with our ongoing acquisition and divestiture activities; (i) the timing of and the realization of anticipated cost savings from restructuring initiatives and the ability to identify additional cost savings opportunities; (j) risks related to the adequacy of our contingent liability reserves; (k) risks relating to the outbreak of the coronavirus (Covid-19); and (l) other risks detailed in our filings with the Securities and Exchange Commission, including the risk factors set forth in our Annual Report on Form 10-K for the year ended May 31, 2020, as the same may be updated from time to time. We do not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210329005670/en/

FAQ

What does RPM International Inc. aim to achieve with the acquisition of Bison Innovative Products?

RPM aims to enhance product offerings and accelerate growth through synergies with its Fibergrate business.

How much is Bison Innovative Products' annual net sales?

Bison Innovative Products has annual net sales of approximately $26 million.

Is the acquisition of Bison expected to impact RPM's earnings?

Yes, the acquisition is expected to be accretive to earnings within one year.

What type of products does Bison Innovative Products manufacture?

Bison manufactures raised flooring systems with adjustable polypropylene pedestals.

Where is Bison Innovative Products headquartered?

Bison Innovative Products is headquartered in Denver, Colorado.