RPM International Realigns into 4 Business Groups

Recently, in Baltimore, Maryland, RPM International Inc. (NYSE:RPM), a world leader in specialty coatings and sealants, outlined the company’s operating improvement plan at an Investor Day. The plan, known as “MAP to Growth,” includes initiatives designed to drive greater efficiency to accelerate growth and increase value from the unique entrepreneurial culture and leading brands that have been the foundation of RPM’s success for decades.

At the event, RPM chairman and chief executive officer Frank C. Sullivan and other key executives discussed the progress already underway and expanded on key elements of the plan to increase profitability across all of the company’s business segments. The company also provided a series of financial goals that it is targeting to achieve by May 31, 2021, including:

$6.25 billion in annual revenue;

$1 billion in EBIT on an annualized run rate, representing 540 basis points of margin improvement; and

$1.5 billion of capital returned to shareholders.

“We could not be more excited about the opportunities ahead for RPM,” stated Sullivan. “Having now completed a comprehensive and detailed analysis across our operations, we have identified significant potential to increase efficiency and drive the long-term profitability of our company. Our MAP to Growth plan is designed to create world-class operations and manufacturing for our businesses. Combining that with our proven track record of growing innovative, market-leading brands will put us in a powerful position for the future.”

Highlights of the Plan

Realignment of the company’s six business groups into four: Performance Coatings, Construction Products, Consumer Products, and Specialty Products. These newly aligned groups will be led by four proven operating presidents: Dave Dennsteadt for Performance Coatings, Paul Hoogenboom for Construction Products, Terry Horan for Consumer Products, and John McLaughlin for Specialty Products.

Each of these group leaders has decades of experience at RPM and within the industry. Reorganizing into these four groups will enable us to better manage our assets and improve synergies across the enterprise.

Target of $290 million in annualized cost savings by December 31, 2020 through consolidation and, where appropriate, centralization of key shared service functions including manufacturing operations; supply chain and procurement; information technology; and finance and administration.

Maintaining the company’s entrepreneurial growth culture by keeping key customer-focused functions that make RPM unique, such as technical support, sales, marketing, and R&D at the business level.

Disciplined and value-creating “protect the house” approach to capital allocation, designed to maintain an investment-grade profile while allowing for further investment in growth, strategic M&A spending, and return of capital to shareholders including over $1 billion targeted in share repurchases and more than $500 million targeted in dividend payouts.

The company has already begun instituting numerous changes, including establishing an operating improvement committee, appointing two new members to the Board of Directors, and engaging a top consulting firm to support execution.

Sullivan added, “RPM has a history of being a great home for entrepreneurial companies. By carrying out our MAP to Growth initiative, we will become an even better destination for them, with operations that execute well and capitalize on RPM’s natural synergy opportunities. We are confident that we can achieve the targets that we’ve set and look forward to delivering long-term growth and enhanced value for all of our stakeholders.”

A webcast replay of the presentations delivered at the Investor Day, including downloads of the slides, can be accessed on the RPM website at

About RPM

RPM International Inc. owns subsidiaries that are world leaders in specialty coatings, sealants, building materials and related services across three segments. RPM’s industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and other construction chemicals. Industrial companies include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Euclid Chemical and RPM Belgium Vandex. RPM’s consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists. Consumer brands include Rust-Oleum, DAP, Zinsser, Varathane and Testors. RPM’s specialty products include industrial cleaners, colorants, exterior finishes, specialty OEM coatings, edible coatings, restoration services equipment and specialty glazes for the pharmaceutical and food industries. Specialty segment companies include Day-Glo, Dryvit, RPM Wood Finishes, Mantrose-Haeuser, Legend Brands, Kop-Coat and TCI. Additional details can be found at and by following RPM on Twitter at

Contact Information

RPM, Inc
RPM, Inc

Medina, Ohio,


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