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RPM Strengthens Building Envelope Platform With Kalzip Acquisition
ZACKS· 2026-01-08 18:11
Core Insights - RPM International Inc. is enhancing its strategic focus on high-value, system-based construction solutions through the planned acquisition of Kalzip GmbH by its Tremco Construction Products Group, expected to close in Q4 FY26 [1][8] Acquisition Details - The acquisition will strengthen Tremco CPG's building envelope portfolio by incorporating Kalzip's expertise in premium metal roof and façade solutions, expanding technical capabilities and product offerings [2][4] - Kalzip generates approximately €75 million in annual sales and has a strong presence in Europe and India, which will enhance Tremco's market reach in complex, high-value construction projects [4][8] Financial Performance - The Construction Products Group, including Tremco CPG, is RPM's largest segment, contributing 37.5% of fiscal 2025 net sales, with Q1 FY26 sales increasing 6.3% year over year to $809.9 million [3] - The growth was driven by robust organic growth of 5.4% and support from acquisitions [3] Strategic Growth Initiatives - RPM is pursuing a disciplined inorganic growth strategy, having completed six strategic acquisitions in fiscal 2025, including Clean Topco Limited and READY SEAL, to enhance core platforms and expand into adjacent markets [5][6] - This strategy has positioned the company with a strong balance sheet entering fiscal 2026, despite a record year of acquisitions [5] Stock Performance - RPM's shares have gained 2.3% over the past month, compared to a 7.6% increase in the Zacks Chemical - Specialty industry, supported by strong demand for turnkey solutions and solid execution of MAP 2025 initiatives [7]