RPM Purchases Texas Manufacturing Plant to Meet Customer Demand and Enhance Operational Efficiencies

Rhea-AI Summary

RPM International Inc. has acquired a 178,000-square-foot chemical manufacturing facility in Corsicana, Texas, from ChampionX Corporation. This facility will be utilized by RPM's Tremco Construction Products Group to expand production capacity for high-growth product lines and enhance operational efficiencies. The acquisition includes plans to retain over 80 existing employees and potentially hire more in the future. CEO Frank C. Sullivan emphasized the strategic benefits of the purchase, which allows RPM to avoid the costs and environmental impacts associated with constructing a new plant.

Positive

• Acquisition of 178,000-square-foot facility strengthens manufacturing capabilities.
• Plans to retain and hire additional employees enhance local job opportunities.
• Immediate operational advantage by utilizing an existing operational plant.

Negative

• None.

MEDINA, Ohio--(BUSINESS WIRE)--

RPM International Inc. (NYSE: RPM) today announced it has procured a 178,000-square-foot chemical manufacturing facility located on 120 acres in Corsicana, Texas. It was purchased from ChampionX Corporation (NASDAQ: CHX) for an undisclosed amount.

The facility will be repurposed to act as a manufacturing campus for a number of RPM’s operating companies, providing multiple opportunities for expansion to meet customer demand and strengthen its supply chain. It will be owned and operated by RPM’s Tremco Construction Products Group.

“The addition of the Corsicana plant allows us to expand production of several of our high-growth product lines while also streamlining our manufacturing processes and creating efficiencies,” stated Frank C. Sullivan, RPM chairman and CEO.

In addition to acquiring the land, facility and equipment at the Corsicana plant, Tremco Construction Products Group also intends to hire the plant’s more than 80 existing employees, with plans to potentially hire additional employees in the future.

“The Corsicana plant was appealing to us for a number of reasons. By purchasing a fully operational facility, we can hit the ground running almost immediately, avoiding much of the cost, time and environmental impact associated with building a new plant,” continued Sullivan. “However, the greatest asset we will acquire is the plant’s existing employees and management operating team, who bring with them decades of experience and a high level of competency that will enable them to quickly and effectively convert the plant to meet our manufacturing needs. We look forward to this expansion into Corsicana and believe it will be beneficial both to RPM and the local community.”

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 15,500 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 availability 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 Covid pandemic; (l) risks related to adverse weather conditions or the impacts of climate change and natural disasters; and (m) 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, 2021, 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/20210907005548/en/

Russell L. Gordon

vice president and chief financial officer

330-273-5090

rgordon@rpminc.com

Source: RPM International Inc.

FAQ

What did RPM International Inc. announce in September 2021?

RPM International Inc. announced the acquisition of a chemical manufacturing facility in Corsicana, Texas.

How large is the facility acquired by RPM International Inc.?

The facility acquired by RPM International Inc. is 178,000 square feet.

What company did RPM International Inc. purchase the facility from?

RPM International Inc. purchased the facility from ChampionX Corporation.

What is the purpose of the new facility for RPM International Inc.?

The facility will serve as a manufacturing campus to expand production for RPM's high-growth product lines.

What are the future hiring plans for RPM International Inc. regarding the new facility?

RPM International Inc. plans to retain over 80 existing employees from the facility and may hire additional staff in the future.