A recent acquisition may aid a Mount Airy company in expansion efforts.
On July 7, a sale was finalized giving Mount Airy’s Applied Polymerics Inc. and Marketing Associates Inc. to RPM International Inc., a subsidiary of United Kingdom-based Universal Sealants Limited.
According to a press release from the Bundy Group — a boutique investment bank which advised both entities throughout the acquisition process — Applied Polymerics manufactures products used in specialized construction such as bridge expansion joints, concrete repair compounds, protective coatings and pavement preservation products.
Universal Sealants is an industry leader in the same field in the United Kingdom, according to the statement.
“Its (Universal Sealant’s) wide range of products and know-how will enable API/MAI (Applied Polymerics Inc. and Marketing Associates Inc.) to expand its reach and become a national player throughout the U.S. in compatible market spaces.”
In a press release from RPM, the company elaborates on the reasoning behind RPM’s purchase of Applied Polymerics.
“API/MAI’s historical track record with local Department of Transportation divisions will greatly accelerate acceptance in the market and provide the opportunity to sell high-value, differentiated technologies to solve larger and more complex bridge and road repair needs.”
The terms of the transaction were not disclosed, though the RPM release states the terms “expected to be accretive to earnings within one year,” meaning RPM’s investment will add to the company’s earnings within a year of the purchase.
Applied Polymerics president Jonathan Simmons said RPM and Universal Sealants aren’t the only winners in this deal.
“There is a tremendous upside for growth here,” noted Simmons. “The company (Universal Sealants) is a global leader in this industry.”
He said local workers shouldn’t be expecting any pink slips, as is sometimes customary when a company is purchased by a larger company. To the contrary, the acquisition is likely to lead to the creation of additional jobs in Mount Airy.
“The acquisition will require a lot of growth on our part,” explained Simmons. “We will likely look to expand in the future.”
Simmons added he has no timeline for expansion as it “will take some time.” However, a bright future is in store for Applied Polymerics with its new parent company.
Andy is a staff writer and may be reached at 415-4698.