RPM International Snaps up Dudick Inc

Specialty Chemicals provider RPM International (RPM), through its Carboline subsidiary, has acquired Dudick Inc. The terms of the acquisition remain undisclosed.

Ohio-based Dudick provides high-performance coatings, flooring systems, and tank linings and has annual net sales of about $10 million.

RPM Chairman and CEO Frank C. Sullivan said, “Dudick will be a natural fit in our Performance Coatings Group, bringing with them a strong reputation for high-quality products and excellent service built under the leadership of Tom Dudick.”

Sullivan added, “This acquisition of the Dudick business will allow Carboline to strengthen its position in the secondary containment linings market with an established and trusted product while simultaneously opening the door to expanded sales and future growth opportunity worldwide.”

While Dudick’s products are manufactured in the U.S., it also has manufacturing associations in Taiwan and South Korea and distributes its products globally. Post-acquisition, Dudick will be a part of RPM’s Carboline subsidiary which produces high-performance industrial coatings, linings, and fireproofing products. (See RPM International stock analysis on TipRanks)

On May 14, RBC Capital analyst Arun Viswanathan reiterated a Hold rating on the stock and increased the price target to $100 (7.5% upside potential) from $92 to account for expanded multiples across the sector.

Additionally, after interacting with RPM’s top brass, Viswanathan noted he had a better understanding of its price to cost and MAP benefits.

Based on 2 Holds and 2 Buys, consensus among analysts is a Moderate Buy. The RPM International average analyst price target of $101.75 implies 9.4% upside potential.

Shares have gained about 16.6% over the past year.

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