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RPM International Expands Waterproofing Portfolio With Volteco Deal

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Key Takeaways

  • RPM agreed to acquire Volteco, a waterproofing supplier based in Italy, for its Tremco CPG business.
  • RPM will add Volteco's Amphibia membrane and other waterproofing products to Tremco CPG's portfolio.
  • Acquisitions added 3.6% to RPM's fiscal 2026 sales, supporting growth amid weak DIY & European markets.

RPM International Inc. (RPM - Free Report) has signed a definitive agreement to acquire an Italy-based leading supplier of below-grade waterproofing solutions, Volteco S.p.A., which recorded sales of €28 million in 2025.

The acquired company will be included in RPM’s Tremco Construction Products Group (Tremco CPG), bringing a unique and differentiated technology platform to the business. Subject to customary closing conditions, the strategic transaction is expected to close in the second quarter of fiscal 2027.

Volteco’s expertise lies in advanced waterproofing technology and is mainly recognized for its Amphibia waterproofing sheet membrane. Its product portfolio stretches through bagged powder goods for patch and repair applications, alongside flexible liquids, mortars, resins and damp-proofing materials. The addition of this company will be revolutionary for RPM’s waterproofing solutions, given the former’s several milestones in high-profile projects, including the protection of historical landmarks in Venice and the construction of modern facilities like the Santa Giulia Ice Hockey Arena in Milan.

Per Frank Sullivan, RPM chairman and CEO, “This acquisition provides Tremco CPG with new technologies that can be leveraged through its global sales force to drive growth and enhance its 'Power of One' value proposition for customers.”

RPM’s Inorganic Efforts to Stimulate Diversified Growth

One of RPM’s core strategies for adding complementary technologies, expanding system capabilities and entering adjacent categories is carefully curated acquisition plans. The company spent $202.4 million on acquisitions in fiscal 2026 and described its pipeline as healthy. During fiscal 2026, acquired businesses contributed 3.6% to consolidated net sales, aiding the fiscal year amid weak DIY and European markets.

During fiscal 2026, the company completed six acquisitions across its three reportable segments, mainly Kalzip GmbH, a global leader in the design and production of metal-based roofs and facades for building envelopes, and Ready Seal Inc., a Texas-based manufacturer of premium exterior wood stains. Management expects Kalzip to become margin accretive after integration over the next several years.

Thus, continued bolt-on activity could broaden RPM’s system offerings, increase project content and support sales growth in higher-value construction and consumer categories.

RPM Stock’s Price Performance

Shares of the coatings, sealants and specialty chemicals manufacturer and marketer have inched up 1.2% in the past six months, outperforming the Zacks Chemical - Specialty industry but underperforming the Zacks Basic Materials sector and the S&P 500 Index.

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Image Source: Zacks Investment Research

Even though buyout strategies and MAP-driven efficiency actions are boding well for the company, elevated raw material inflation, ongoing geopolitical pressures and a weak DIY market are causing near-term concerns.

RPM’s Zacks Rank & Key Picks

RPM International currently carries a Zacks Rank #4 (Sell).

Here are some better-ranked stocks from the same sector.

Sensient Technologies Corporation (SXT - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Sensient delivered a trailing four-quarter earnings surprise of 14.1%, on average. The stock has trended up 48.5% over the past six months. The Zacks Consensus Estimate for Sensient’s 2026 sales and EPS implies an increase of 11.6% and 20.7%, respectively, from a year ago.

Ternium S.A. (TX - Free Report) presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter negative earnings surprise of 11.1%, on average. Ternium stock has gained 41.5% over the past six months.

The Zacks Consensus Estimate for Ternium’s 2026 sales and EPS implies an increase of 12.3% and 201.4%, respectively, from a year ago.

Quaker Chemical Corporation (KWR - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 8.1%, on average. Quaker stock has gained 25.8% over the past six months.

The Zacks Consensus Estimate for Quaker’s 2026 sales and EPS implies an increase of 8.1% and 11.8%, respectively, from a year ago.

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