MEDINA, OH-- RPM International Inc. settled a lawsuit that resolves personal injury asbestos-related claims related to Bondex International, Inc.
The agreement calls for a plan of reorganization with the United States Bankruptcy Court. Under the terms of the agreement a $450 million trust will be established for the benefit of the asbestos claims. Over the next fours years RPM will deposit an additional $347.5 million into the trust fund.
Bondex's parent company, Specialty Products Holding Corp., which had revenues of $285 million over the last fiscal year, will remain a wholly owned subsidiary of RPM and its results of operations will be reconsolidated with those of RPM
RPM officials expect to provide additional details on the financial impact of the bankruptcy agreement upon consummation, which is expected by the end of fiscal 2015.
In addition to the litigation, RPM reported record sales for both its fiscal fourth quarter and fiscal year ended May 31, in art due to the colder than normal winter, which increased demand for the company’s Legend Brands restoration services. Legends Brands manufactures equipment for water and smoke damage remediation mainly in North America. Businesses serving the construction market in North America also made “slow, but steady” improvement over the year. However, the company said the past 18 months have been challenging for the company’s Tremco roofing division.
Fourth-quarter net sales increased 9.1 percent to $1.28 billion from $1.17 billion. Net income for the fourth quarter was $108.8 million, up 66.4percent from the $65.4 million reported in the fourth quarter of fiscal 2013, according to company reports.
In June RPM was notified by the Securities and Exchange Commission that it is the subject of a formal investigation pertaining to the timing of its disclosure and accrual of loss reserves and Department of Justice investigation into compliance issues relating to Tremco roofing division's GSA contracts.
RPM's industrial products include roofing systems, sealants, corrosion control coatings, flooring coatings and specialty chemicals. Industrial brands include Stonhard, Tremco, illbruck, Carboline, Flowcrete, Universal Sealants and Euco. RPM's consumer products are used by professionals and do-it-yourselfers for home maintenance and improvement and by hobbyists.
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