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10.RPM
RPM International Inc
2628 Pearl Road
Medina, OH 44258, USA
Tel: +1 330 273 5090
Fax: +1 330 225 8743
www.rpminc.com
Key Figures:
Paint as % of Group Sales 88%
Coatings Sales£º2.02 billion
Coatings Sales£º310m liters
Employees 7,700
Europe 9%
Americas 88%
Asia Pacific 3%
Key Developments:
* Record sales and earnings
* Sharply rising material cost environment
* Spending controls, productivity improvements and pricing initiatives
* Cross-marketing products and services
* Continuing to target complementary acquisitions in North America and Europe
Executive Team:
Frank C. Sullivan£¬President and Chief Executive Officer.
P. Kelly Tompkins£¬Senior Vice President£¬General Counsel and Secretary.
Business Unit Sales:
Industrial 54%, Consumer 46% Coatings products include roofing systems, aluminum coatings, cement-based paints, hobby paints, pleasure marine coatings, furniture finishing repair products, automotive repair products, industrial corrosion control products, consumer rust-preventative coatings, polymer flooring, fluorescent coatings, exterior insulation finish systems, shellac-based coatings.
Market Positioning:
RPM has an established reputation as an industry consolidator, having made 50 acquisitions in the last decade and 100 in the last four decades. It pursues opportunities that are:
RPM has an established reputation as an industry consolidator, having made 50 acquisitions in the last decade and 100 in the last four decades. It pursues opportunities that are:
* Synergistic or bolt-on product line: Established consumer brands to augment existing lines and to sell within existing distribution channels.
* Entrepreneurial niche market leaders: Companies with sales of between $10m and $100m whose entrepreneurial owners will stay and continue to grow as part of a larger enterprise.
* Strategic acquisitions: Companies with substantial sales volume that can enhance its presence in the specialty coatings industry.
Commentary:
RPM's growth strategy under Frank Sullivan is:
* Internal growth of 5% annually
* Acquisitions to match internal growth
* Enhanced profitability from restructuring and acquisition synergies
Key elements of RPM's success are attributed to:
* Entrepreneurial operating philosophy and structure
* Leading brands, common businesses, balance between consumer and industrial markets
* Building on heritage of profitable growth
WPCIA Senior Fellow Industry: Alex
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