RPM Acquires Leading Abrasives Manufacturer
MEDINA, Ohio–(BUSINESS WIRE)–RPM International Inc. (NYSE: RPM) today announced that its Rust-Oleum business has acquired Ali Industries, LLC, a leading manufacturer of sandpaper and other abrasives. Headquartered in Fairborn, Ohio, Ali Industries has annual net sales of approximately $75 million. Terms of the transaction were not disclosed.
Ali Industries, which is commercially known as Gator Finishing Products, is a market-leading innovator and offers finishing products for power sanding, hand sanding, cutting and grinding, and floor sanding. Its products are used on many surfaces, including wood, metal and paint. They are sold under well-recognized brand names, including Gator, Finish 1st and Zip Sander. The company’s abrasive products are manufactured in the U.S. and distributed across North America through home improvement centers, mass merchandisers, hardware, paint and automotive supply stores.
Ali Industries will be a free-standing unit under RPM’s Rust-Oleum business, which is the global leader in manufacturing innovative coatings that empower do-it-yourselfers and professionals. The Ali brothers, Terry, Chris and Philip, will continue leading the business as part of Rust-Oleum.
“Ali Industries is an excellent synergistic fit within our Consumer Group because it broadens the segment’s surface preparation capabilities by adding abrasives to our lineup of patch, repair and cleaning products. Through this transaction, we plan to enhance Ali’s distribution base and enable the business to penetrate new markets,” stated Frank C. Sullivan, RPM chairman and CEO. “This acquisition presents significant opportunities to build even stronger relationships with key retailers and further deliver on customer needs.”
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 15,000 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 [email protected]
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 recent 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.
Russell L. Gordon
vice president and chief financial officer