RPM International Inc. (NYSE: RPM), a holding company of global specialty coatings, building materials and services businesses, today announced that its Carboline subsidiary has acquired a majority interest in its Indian joint venture, CDC Carboline India Pvt. Ltd. Terms of the transaction, which is expected to be accretive to earnings within one year, were not disclosed.
Based in Chennai, India, CDC Carboline India manufactures corrosion protection and fireproofing products predominately for the petrochemical, power, fabrication, and commercial and industrial fireproofing markets. The company has annual sales of approximately $8 million.
As a result of this transaction, Carboline, which is part of RPM's Performance Coatings Group, will own an 80 percent majority position in CDC Carboline India. The company's founder, Daniel Chittayagam, will retain 20 percent ownership and remain as managing director.
"This ownership stake in CDC Carboline India will enable us to further expand our position in the vibrant and growing Indian marketplace, and specifically to participate in India's continued emphasis on infrastructure development with our Carboline products, as well as products from our other RPM Performance Coatings businesses," stated Frank C. Sullivan, RPM chairman and chief executive officer.