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RPM International Acquires Ready Seal, Boosts Rust-Oleum Business

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Key Takeaways

  • RPM acquired Ready Seal to strengthen Rust-Oleum's presence in premium exterior wood stains.
  • The deal boosts the product reach of Rust-Oleum using its sales force and distribution network.
  • Product launches and strategic buyouts signal long-term growth focus by RPM despite recent stock pressure.

RPM International Inc. (RPM - Free Report) further enhances its Rust-Oleum business by acquiring Ready Seal Inc., a Texas-based manufacturer of premium exterior wood stains.

Sitting under the Consumer Group segment, RPM’s Rust-Oleum business is gaining traction in the industry (mainly among professional contractors and DIY enthusiasts) with its portfolio of exterior wood care products. This strategic buyout is expected to further diversify and enhance this business’ portfolio, offering a competitive edge.

By being considered for the Rust-Oleum business, Ready Seal will be able to witness accelerated sales growth for its products like Goof-Proof stain-and-sealer-in-one. This accretive boost will leverage the sales force and distribution channels of the Rust-Oleum business.

RPM’s Attention for the Rust-Oleum Business

RPM International’s focus on enhancing and diversifying the product offerings of its Rust-Oleum business is boding well for its long-term growth visibility. Already done with the first nine months of fiscal 2025, the company has engaged in several product enhancement initiatives through product innovation and strategic buyouts.

During the third quarter of fiscal 2025 earnings call, the company highlighted the launch of several new products, one of which was Rust-Oleum low odor, a water-based aerosol paint, having the durability to be used indoors and on outdoor projects.

Moreover, on May 1, 2025, RPM signed a definitive agreement to acquire the UK-based Star Brands Group, mostly known for the globally renowned The Pink Stuff product. This strategic transaction is expected to enhance and diversify Rust-Oleum’s cleaners business and expand market reach globally. The acquisition is expected to close in the latter half of the fourth quarter of fiscal 2025 or the early first quarter of fiscal 2026, after the satisfaction of customary closing conditions.

RPM Stock’s Price Performance

Shares of this high-performance coatings, sealants and specialty chemicals manufacturer and marketer have tumbled 7.3% in the past three months compared with the Zacks Chemical - Specialty industry’s 2.4% decline.

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Although increased cost structure and foreign currency woes are concerning for the prospects, the efficient execution of the MAP 2025 initiatives, along with accretive inorganic and organic strategies, offers sustainable revenue visibility and profitability trends.

RPM’s Zacks Rank & Key Picks

RPM International currently carries a Zacks Rank #3 (Hold).

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The Zacks Consensus Estimate for AngloGold Ashanti’s 2025 sales and EPS implies an increase of 51.1% and 122.2%, respectively, from a year ago.

Franco-Nevada Corporation (FNV - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 1.6%, on average. The stock has gained 43.7% year to date.

The Zacks Consensus Estimate for Franco-Nevada’s 2025 sales and EPS implies an increase of 32.2% and 39.6%, respectively, from a year ago.

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