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RPM International Inc. has acquired Morrells Woodfinishes and Firetherm Intumescent & Insulation Supplies Ltd., both of the United Kingdom, in back-to-back deals announced this week. The two companies are expected to start contributing to earnings this week. Terms of the transactions were not disclosed.
(Morrells Woodfinishes Ltd. screen grab)
CLEVELAND, Ohio -- RPM International Inc., the Medina County-based parent company of high-performance coatings, sealants and specialty chemicals such as Rust-Oleum, has bought two major category-dominating companies in the United Kingdom in as many days: Firetherm Intumescent & Insulation Supplies Ltd. and Morrells Wood Finishes Ltd. Together, their annual sales are about $43 million.
RPM's Tremco Illbruck Group has acquired Firetherm Intumescent & Insulation Supplies Ltd., of Kent, England, one of the country's largest manufacturers and suppliers of fire-stopping solutions for the construction industry. Firetherm, with annual net sales of about $10 million and about 50 employees, is expected to contribute to earnings within a year. Terms of the deal were not disclosed.
Firetherm's products include fire-stopping products, intumescent coatings, and fire-rated sealants and fire boards, primarily sold to specialty contractors, specialty contractors and home builders.
RPM Chairman and CEO Frank C. Sullivan
"Firetherm, with its high degree of fire-stopping technical expertise, is a good strategic fit with our Tremco Illbruck Group and its existing Nullifire intumescent coatings business," RPM Chairman and Chief Executive Frank C. Sullivan said in a written announcement. "The acquisition expands Tremco Illbruck's product range and capabilities for fire-stopping products and propels it to the leading position for passive fire protection in the U.K. We expect to grow Firetherm in the U.K. and internationally" via Tremco's distribution network.
On Monday, RPM announced that its RPM2 Group had acquired Morrells Wood Finishes Ltd., of Cheshire, the United Kingdom's largest manufacturer of high-performance wood finishes. Morrells' annual net sales are about $33 million, and it has nearly 150 employees. Terms of the deal were not disclosed.
Morrells, which will operate as a stand-alone company within RPM2's Wood Finishes Group, designs, manufactures and distributes a number of high-performance wood coating systems, including proprietary wood stains, lacquers, colorants and adhesives for the furniture, cabinetry, and building construction and restoration sectors.
Its specialty coatings include finishes that protect from fire, weather and bacteria sold under the Xerofire, Induro and Omnia brands, RPM said. It also sells professional application equipment and accessories under the Sprayshop brand.
"With a strong management team, led by Chief Executives Scott Drayton and Tony O'Connor, who will stay on to run the business, a portfolio of advanced technologies and a customer-centric distribution strategy, Morrells is an excellent fit within our Wood Finishes Group," Sullivan said in a written statement. "We intend to accelerate Morrells' growth by leveraging its coatings technologies across the RPM network."
RPM's well-known U.S. brands include DAP, Tremco, Stonhard, Carboline and locally-based Euclid Chemical. RPM's shares closed at $48.02, down 11 cents from Monday's close of $48.13.