Segments
RPM operates through four segments: * Construction Products Group products are sold to distributors, contractors and end-users over a large geographic footprint that spans approximately 130 countries and territories. About 34% of RPM's net sales are generated by the Construction Products Group. * Performance Coatings Group products are sold worldwide to contractors and distributors, as well as directly to end‑users with a unique supply-and-apply model serving manufacturers, public institutions and other commercial customers. The Performance Coatings Group generates approximately 17% of RPM's total sales. * The Consumer Group manufactures and markets professional use and do-it-yourself products for a variety of consumer applications, including home improvement and personal leisure activities. The consumer segment's major manufacturing and distribution operations are located primarily in North America, along with a few locations in Europe, Australia, South Africa and South America. Its products are sold directly to mass merchandisers, home improvement centers, hardware stores, paint stores, craft shops, cosmetic companies and distributors. Approximately 38% of RPM's net sales are generated by the Consumer Group. * Specialty Products Group products are sold throughout North America and a few international locations, primarily in Europe. Specialty product lines are sold directly to contractors, distributors and end-users. The Specialty Products Group generates approximately 11% of RPM's total sales.History
In May 1947, Frank C. Sullivan founded Republic Powdered Metals, the forerunner to RPM International Inc. The company manufactured and sold a heavy-duty aluminum roof coating called Alumanation, which is still sold today. Sales in the first year reached $90,000. In August 1971, Frank Sullivan died suddenly. Later that same year, RPM, Inc. was formed to become a holding company to develop a more aggressive acquisition program in a rapidly consolidating paint and coatings industry. Frank's son, Thomas C. Sullivan, who was previously president of Republic Powdered Metals, became chairman and chief executive officer of the holding company. He and James A. Karman, who was elected president and chief operating officer in 1978, led RPM for more than three decades. After more than 30 years at the company's helm, Sullivan and Karman retired as executive officers of the company in 2002. During their tenure, net sales increased to $2 billion from $11 million, net income increased to $101.6 million from $0.6 million, cash dividends per share increased to $0.50 from $0.0035 (split-adjusted), and a $1,000 investment in RPM shares in 1971 would have been worth more than $100,000. Tom Sullivan died in 2020 at the age of 83. Tom was succeeded by his son, Frank C. Sullivan, who became president and chief executive officer in 2002.Legal Issues
In August 2013, RPM paid $61 million to settle U.S. General Services Administration claims regarding a subsidiary's overcharging the U.S. government on roofing contracts. In June 2014, the SEC launched an investigation into the timing of RPM's disclosure and accrual of loss reserves involving the GSA settlement. The company subsequently restated its results for the first, second and third quarters of fiscal 2013. The restatements had no impact on its audited results for the fiscal year ended May 31, 2013. On September 9, 2016, the SEC charged RPM and its general counsel, Edward W. Moore, with violating antifraud provisions of Federal securities laws by failing to disclose a material loss. According to the SEC's complaint Moore did not inform RPM's CEO, CFO, audit committee and independent auditors of material facts about the U.S. Department of Justice investigation into the GSA issue. The company stated that it believed the allegations to be without merit and that it intended to defend itself in court. On December 23, 2020, the SEC announced that the company and Moore agreed to pay more than $2 million to settle the SEC's charges without admitting or denying the allegations of the complaint.References
{{DEFAULTSORT:Rpm International Multinational companies headquartered in the United States Companies listed on the New York Stock Exchange Manufacturing companies based in Ohio Paint and coatings companies of the United States Chemical companies established in 1947