RPM International to Expand Portfolio by Acquiring Star Brands Group

RPM International Inc. RPM has signed a definitive agreement to acquire the UK-based Star Brands Group, mostly known for the globally renowned The Pink Stuff product.RPM stock dropped 4.2% during Thursday’s trading session and inched down 1% in the after-hours, following the buyout agreement announcement.More About RPM’s New BuyoutRPM International is engaging in this strategic transaction with Star Brands to enhance and diversify its Rust-Oleum subsidiary’s cleaners business. The addition of the acquired company to the portfolio will expand and strengthen RPM’s position across multiple channels, including e-commerce, grocery and drug stores.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. Upon the completion of the transaction, Star Brands will operate under RPM International’s Consumer Group segment.Per Frank C. Sullivan, RPM chairman and CEO, “The Pink Stuff will strengthen our presence and scale in multiple sales channels, and, thanks to improvements we have made through our MAP 2025 program, we are well-positioned to support the brand’s growth globally.”RPM International’s Inorganic Initiatives Enhance ProspectsAcquisitions and divestitures have been an important part of RPM International’s growth strategy. Strategic buyouts are mainly aimed at enhancing brand portfolios, expanding market reach, increasing innovation aspects and ensuring profitability. In the second quarter of fiscal 2025, the company acquired TMP Convert SAS to enhance its decking and landscaping product range.Moreover, RPM regularly divests its less profitable and underperforming businesses to focus on its core areas to accelerate growth and improve shareholder value. In the first quarter of fiscal 2024, the company divested USL's Bridgecare services division.These initiatives align with RPM’s MAP 2025 operational improvement initiative, which focuses on accelerating growth, maximizing operational efficiencies and generating superior value for its customers, associates and shareholders.Image Source: Zacks Investment ResearchShares of this high-performance coatings, sealants and specialty chemicals manufacturer and marketer have tumbled 8.6% in the past three months against the Zacks Chemical - Specialty industry’s 3.6% growth. Although increased cost structure and foreign currency woes are concerning to the prospects, the efficient execution of the MAP 2025 initiatives, along with accretive inorganic and organic strategies, bodes well for the upcoming period.RPM’s Zacks Rank & Key PicksRPM International currently carries a Zacks Rank #4 (Sell).Here are some better-ranked stocks from the Basic Materials sector.Ingevity Corporation NGVT currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company delivered a trailing four-quarter earnings surprise of 202.9%, on average. The stock has lost 20.7% year to date. The Zacks Consensus Estimate for Ingevity’s 2025 sales has declined 2.3% while earnings per share (EPS) implies an increase of 26.8%, from a year ago.ArcelorMittal S.A. MT currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 4.1%, on average. The stock has trended upward 7.2% year to date.The Zacks Consensus Estimate for ArcelorMittal’s 2025 sales has declined 1.5% while EPS implies an increase of 31.2%, from a year ago.Carpenter Technology Corporation CRS currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has moved down 7.4% year to date.The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 sales and EPS implies an increase of 5.3% and 46.6%, respectively, from a year ago.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ArcelorMittal (MT): Free Stock Analysis Report Carpenter Technology Corporation (CRS): Free Stock Analysis Report RPM International Inc. (RPM): Free Stock Analysis Report Ingevity Corporation (NGVT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks