DAP to sell noncore product lines to Mass. firm for undisclosed price

March 20, 2001|By Dan Thanh Dang | Dan Thanh Dang,SUN STAFF

In an effort to strengthen its core business, Baltimore-based caulk manufacturer DAP Inc. agreed yesterday to sell its professional ceramic, carpet and vinyl products line to a Massachusetts installation firm for an undisclosed amount of money.

DAP, a marketer of home improvement and building products that serves as an operating company of RPM Inc., will transfer all of its assets in the professional tile and flooring business to Bostik Findley Flooring. The sale is expected to close March 30.

"Strategically, this is a great move for DAP," said John J. McLaughlin, president and chief executive of DAP. "This positions us for expansion in our businesses and allows us to focus on growing our core product lines, while strengthening relationships with our key customers."

Part of the deal includes the transfer of three manufacturing facilities - in Orange, Calif.; Conyers, Ga.; and Paulsboro, N.J., - to Bostik. DAP Durabond products included in the agreement are ceramic tile adhesives, mortars, grouts and additives, as well as professional floor covering patches, underlayments and adhesives.

The sale of the Durabond products will have little or no impact on the company's headquarters in Canton. In the next year, however, DAP is studying the possibility of relocating a New Jersey manufacturing plant to either Baltimore County, Dallas or Dayton, Ohio.

"Wherever it ends up, we will be adding workers to that market," McLaughlin said.

Shares of RPM Inc. increased 25 cents on the New York Stock Exchange to close yesterday at $9.60.

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