Rust-Oleum will not only become the top spray paint company in South Africa, but it will be able to use Spraymate's factories and distribution network to accelerate its growth in the region.
CLEVELAND, Ohio -- RPM International Inc. this week announced that it has acquired Spraymate Group of South Africa, producer of the country's No. 1 brand of aerosol paint. Terms of the deal were not disclosed.
Spraymate, based outside of Johannesburg, will become part of RPM's Rust-Oleum Group, a leading manufacturer of premium consumer and industrial paints and coatings. Spraymate has annual net sales of about $5 million, but is not sold in the United States. The transaction is expected to contribute to earnings within one year.
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Empty canisters of Spraymate Group's aerosol paint wait to be filled in this screen grab from the company's website. Spraymate Group is being acquired by RPM International Inc. for an undisclosed sum. RPM said that the majority of Spraymate's sales are in the decorative and retail market via South Africa's big box stores and independent dealers under the Spraymate brand, comparable to the home-improvement and hardware stores in the U.S. The company also makes marking paints for the mining industry under the Mine Mate brand.
"This acquisition gives Rust-Oleum, which has been building its presence in South Africa by importing products, the opportunity to utilize Spraymate's manufacturing and distribution capabilities," said RPM Chairman and Chief Executive Frank C. Sullivan, in a written announcement. Rust-Oleum will not only become the top spray paint company in South Africa, but it will be able to use Spraymate's factories and distribution network to accelerate its growth in the region.
"Spraymate will benefit from Rust-Oleum's product innovation, marketing capabilities and category management," he said.
This isn't RPM's first foray into South Africa, because its StonCor polymer flooring business already operates in the country, a spokesman said. Rust-Oleum has been importing products to the country for some time.
"RPM looks forward to welcoming the Spraymate management team, led by managing director Warren Howell, son of one of the firm's founders, to the RPM family of businesses," Sullivan said.
RPM is a Medina County-based holding company whose subsidiaries manufacture high-performance coatings, sealants and specialty chemicals for both industrial and consumer needs. Besides Rust-Oleum, its other well known brands include DAP, Tremco, Stonhard, Carboline and Euclid Chemical.
