Baltimore-based DAP now belongs to RPM

Neither layoffs nor closings planned

Sealant industry

August 04, 1999|By Amanda J. Crawford | Amanda J. Crawford,SUN STAFF

RPM Inc. of Ohio said yesterday that it completed its acquisition of Baltimore-based DAP Products Inc. and DAP Canada Corp. for $290 million in cash.

Dave Reif, vice president of finance for RPM, a sealant manufacturer whose brands include Rust-Oleum and Zinsser, said it will be "business as usual" for DAP's employees and customers.

He said DAP will continue to be based in Baltimore under the leadership of President and Chief Executive Officer John McLaughlin, and no layoffs or plant closings are planned.

"A lot of good things will come to pass as a result of the acquisition," McLaughlin said.

"This is extremely positive not only for our customers and our associates but also for our community."

McLaughlin said the acquisition will help DAP continue to expand its Baltimore operations.

DAP, which manufactures caulks and other sealants and adhesives, including Kwik-Seal and Durabond brands, has about 125 employees at its headquarters in Canton and 175 employees at its manufacturing plant at Sparrows Point, one of seven plants in North America.

Analyst Walter H. Morris of Robert W. Baird & Co. called the acquisition a "good fit."

"Both companies have leading consumer product lines," he said. "Combined they will be that much stronger in the marketplace."

RPM reported net income of $88 million on $1.6 billion in sales last year, more than six times DAP's expected sales of $250 million this year.

Shares of RPM closed at $15 yesterday, up 6.25 cents.

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