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MEDINA, Ohio - RPM International Inc. (NYSE: RPM), a $14 billion market cap company with a "GOOD" Financial Health score according to InvestingPro, has acquired Ready Seal Inc., a Texas-based manufacturer of premium exterior wood stains, for its Rust-Oleum business division, according to a company press release.
Ready Seal, known for its "Goof-Proof" stain-and-sealer-in-one products that can be applied in various temperature conditions without showing lap marks or requiring back brushing, generated approximately $45 million in sales during calendar year 2024. Financial terms of the transaction were not disclosed. With a gross profit margin of 41% and strong return on equity of 26%, RPM has demonstrated solid operational efficiency in integrating acquisitions.
The acquisition strengthens Rust-Oleum’s portfolio of exterior wood care products, a segment that has been gaining popularity among both professional contractors and do-it-yourself enthusiasts.
"This acquisition strengthens our offerings in the attractive exterior wood care category," said Frank C. Sullivan, CEO of RPM. He added that Rust-Oleum is positioned to leverage its sales force and distribution channels to accelerate Ready Seal’s growth.
RPM International operates across four business segments: consumer, construction products, performance coatings, and specialty products. The company employs approximately 17,200 individuals worldwide.
Rust-Oleum, a subsidiary of RPM, manufactures coatings and products for various applications including small project paints, cleaners, primers, automotive, industrial, and wood care products.
In other recent news, RPM International has been the focus of several analyst updates and strategic developments. BMO Capital raised its price target for RPM International to $140, maintaining an Outperform rating. This decision reflects a challenging forecast for fiscal 2026, particularly in the Consumer segment, but also takes into account the recent acquisition of The Pink Stuff and favorable foreign exchange impacts. Evercore ISI also reiterated an Outperform rating with a $145 target, noting RPM’s construction segment resilience and anticipated margin improvements in the fourth quarter.
Citi initiated coverage on RPM International with a Buy rating and a $135 price target, highlighting the company’s strong operating leverage and potential benefits from infrastructure trends. Conversely, UBS adjusted its price target down to $113, maintaining a Neutral rating due to concerns over RPM’s mixed segment performance and increased raw material costs. BofA Securities further reduced RPM’s price target to $94, citing anticipated deceleration in construction and repair markets, alongside a cautious outlook for fiscal year 2026.
These developments underscore the varied perspectives among analysts regarding RPM International’s financial prospects and strategic positioning. While some firms see growth potential, others express caution due to market uncertainties and cost pressures. These recent developments provide investors with a range of insights into RPM International’s current and future market dynamics.
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