"It's not just the size of the deal; it's the scope of the opportunity," said Frank C. Sullivan, RPM chairman and chief executive officer, via telephone from Brazil.
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View full sizeRPM International's new Viapol business in Brazil sells its products in about 5,000 stores nationwide. RPM's acquisition of the company gives RPM access to Viapol's products now sold only in South America, and opens up the Brazilian markets for RPM products like Rust-Oleum currently unavailable there.MEDINA, Ohio - RPM International Inc. has acquired its first Brazilian company as the specialty coatings company continues its international expansion into the largest economy in South America.
The Medina company's purchase of Viapol Ltda., a major Brazilian manufacturer of building materials and construction products, is the seventh acquisition in just over a year and the first one for the 2013 fiscal year that began June 1.
"It's not just the size of the deal; it's the scope of the opportunity," said Frank C. Sullivan, RPM chairman and chief executive officer, via telephone from Brazil.
The deal gives RPM access to Viapol's products now sold only in South America and opens up the Brazilian markets for RPM's products, including Rust-Oleum, DAP, Tremco and other industrial and consumer products, currently unavailable there.
Sullivan said "2013 has the potential to be even busier than 2012" for acqusitions, with talks in the works to expand RPM's presence in India, China and Turkey.
"We've got a strong balance sheet and we're generating good cash flow, with the goal of expanding into the developing world," he said. He said there are no plans to export manufacturing jobs overseas.
As with previous deals, RPM did not say how much it paid.
Viapol, a 22-year-old, family-owned company based in Cacapava, Brazil, near Sao Paulo, has annual sales of approximately $85 million, with more than 300 workers and two factories.
Its products, sold in about 5,000 stores, include rolled asphalt roofing materials, waterproofing products, and retail paints, varnishes and stains.
Viapol will become part of The Euclid Chemical Group, RPM's construction division in Euclid.
RPM's recent acquisitions include:
•Australian company HiChem Paint Technologies Pty. Ltd., which makes automotive aftermarket coatings;
•German company FEMA Farben + Putze GmbH, which makes insulating and finishing systems for the French and German construction markets;
•Spanish company Grupo P&V, which manufactures and installs materials used for fire protection, soundproofing and hot and cold insulation.
•Legend Brands of Burlington, Wash., a $70 million company that specializes in industrial cleaning products and fire, smoke and water restoration.
•Italian company API S.p.A., a $28 million producer and installer of polyurethane and urethane-based floors and decks solutions for cruise ships, mega-yachts and naval ships.
RPM now employs 9,500 worldwide, including about 900 in Northeast Ohio.
RPM will report fourth-quarter and full-year earnings on Monday, July 23.
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