Industry News (Week of 7/30/07)
ASC JOINS NINESIGMA'S GLOBAL INNOVATION NETWORKNineSigma, a leading provider of open innovation solutions, has announced that the Adhesive and Sealant Council, Inc. (ASC), a North American trade association dedicated to representing the adhesive and sealant industry, has joined its Innovation Alliance Program. The addition of the ASC's 1000 members, which includes 125 adhesive and sealant manufacturers, raw material and equipment suppliers and industry consultants, expands the reach of NineSigma's network of solution providers in this sector. ASC members account for more than 75 percent of aggregate adhesive and sealant industry revenues, which exceed $6 billion annually.
NineSigma's unique open innovation process creates tremendous value for ASC's global membership, facilitating new business leads and relationship opportunities with Global 1000 companies. NineSigma drives the exchange of information regarding technology needs and potential solutions in a way that protects the innovator's intellectual property and the solution seeker's market potential.
For more information, visit www.ascouncil.org.
DAP REBRANDS, EXPANDS PROFESSIONAL CONSTRUCTION ADHESIVESThe DAP line of professional quality, superior performance construction adhesives has been rebranded, repackaged and expanded. All DAP construction adhesives have been rebranded under the Beats The Nail® brand of professional construction adhesives, a brand known and trusted by DIYers and pros for years.
The line has been repackaged with bold new eye-catching designs that clearly communicate the product attributes. The color-coded packaging allows for fast and easy product selection and impactful on-shelf merchandising. Furthermore, the line has been expanded to include the latest innovations in construction adhesives technology.
New products include Beats The Nail® Heavy-Duty Projects Construction Adhesive with Instant Grab technology and Beats The Nail® Molding & Trim Adhesive with Instant Grab technology. The Instant Grab technology acts just like a second pair of hands by holding projects in place instantly. It drastically reduces bracing and nailing requirements, and is repositionable for up to 15 minutes. Plus, these products are VOC compliant and clean up easily with soap and water.
For more information, visit www.DAP.com.
EDGEWATER FUNDS ANNOUNCES STRATEGIC ALLIANCE TO ACQUIRE COMPANIES IN CHEMICAL INDUSTRYThe Edgewater Funds has announced the formation of a strategic alliance with Robert B. Covalt and Associates. This alliance is focused on buyout opportunities of high quality middle market companies in the Specialty Chemical Industry, with an emphasis on adhesives, sealants and coatings.
Covalt was founder, chairman, president and CEO of Sovereign Specialty Chemicals, Inc., and successfully led Sovereign’s growth from $0 to almost $400 million in revenues through a combination of nine acquisitions and organic growth. Prior to Sovereign, Mr. Covalt served as Morton International’s Corporate executive vice president, and previous to that he served as president of Morton’s Specialty Chemicals Group. As president, he led the growth of its specialty chemicals business from $175 million to $1.3 billion in sales, and completed 13 acquisitions ranging in size from $3 to $170 million.
Former Sovereign executives CFO John Mellett and vice president Paul Gavlinski are working with Covalt in this endeavor.
Scott Meadow, partner with the Edgewater Funds, commented, “We are excited to be associated with a top-notch group of executives. Bob, John and Paul are very experienced and have an outstanding track record. We view the Specialty Chemical Industry as an attractive investment area, particularly given the large number of companies with sales of $25 to $300 million.”
Mr. Covalt added, “We are delighted to have an experienced financial partner who can assist us with our acquisition plans.”
For more information, visit www.edgewaterfunds.com.
HENKEL NAMES TRIPPEL PRESIDENT OF AEROSPACE GROUPHenkel Corp. has announced the appointment of Patrick Trippel to the position of president for the company’s aerospace group. Trippel currently serves as president of the electronics group of Henkel and will maintain these duties while expanding his role to include leadership of the aerospace business.
Since joining Henkel in 2002, Trippel has been instrumental in streamlining the electronics group’s manufacturing and R&D operations, as well as its global footprint. He has modernized the materials business by incorporating a methodology and global structure that allows for the development and deployment of proven and guaranteed compatible materials for the entire semiconductor and printed circuit board assembly value chains. With the manufacturing and delivery synergies between Henkel’s electronics and aerospace businesses, Trippel is well positioned to apply many of the electronics group’s successes to the aerospace operation, taking it to the next level.
The aerospace group of Henkel manufactures a wide range of Hysol®, Turco® and Frekote® brand products for aircraft structural assembly (OEM), metal surface treatment, and maintenance repair operations (MRO). Henkel supplies adhesives and resins serving composite, high temperature and metal/honeycomb assembly, and offers a full line of cleaners and metal surface treatment products for exterior, component, and engine overhaul. Backed by a global technical sales force and distributors for service and support, Henkel’s aerospace materials are enabling the production and repair of today’s most advanced aircraft.
For more information, visit www.henkel.com.
HERCULES AND HEARTLAND ANNOUNCE R&D VENTUREHercules Inc. and Heartland Resource Technologies LLC have announced a new research and development venture called H2H Innovations. H2H Innovations plans to leverage existing soy-based adhesive technologies from both companies to accelerate the development of new adhesive products for the wood products industry.
Development efforts will focus on cost-competitive, formaldehyde-free resins for decorative plywood, wood flooring, particleboard, and medium-density fiberboard markets. The venture will also offer technologies for oriented strand board manufacturers that allow traditional phenolic resins to be extended, resulting in lower-cost adhesives with reduced formaldehyde content.
H2H Innovations, which will be 51% owned by Hercules, will utilize the technical resources of both Hercules and Heartland. Wood adhesive products developed by H2H Innovations will be manufactured and sold by Hercules, and may also be licensed to third parties.
Commenting on the joint venture, Paul Raymond, President of Hercules Paper Technologies and Ventures, said, “This venture is yet another example of how Hercules is committed to developing environmentally friendly and sustainable chemical products and processes. The combined resources of both companies should allow Hercules to quickly commercialize new technologies that address industry needs.”
Frank Trocino, CEO of Heartland Resource Technologies, said, “This collaborative relationship is complementary and mutually beneficial - both strategically and synergistically - for Heartland and Hercules. The building products industry should expect important developments from H2H Innovations in the near future.”
For more information, visit www.herc.com or www.heartlandresource.com.
PILOT CHEMICAL LAUNCHES NEW WEBSITEPilot Chemical Company recently launched a redesigned website that provides expanded information on its products, chemistries, capabilities, management and applications. The redesigned site, www.pilotchemical.com, features simple navigation and enhanced graphics that make it easier for visitors to find information quickly. Most importantly, a library of data sheets, technical bulletins, formulations and material safety data sheets are easily searchable via the site. Willow Creative Group, a Cincinnati-based strategic marketing agency, handled the redesign of the Pilot Chemical website.
Pilot Chemical Company is a global producer of high-quality specialty chemicals for a variety of industries, including personal care, household and industrial detergent, lubricant, and agriculture. Pilot is a leader in proprietary technologies, chemical innovation, product quality and safety.
For more information, visit our web site at www.pilotchemical.com.
PRIME RESINS CELEBRATES 25 YEARS IN BUSINESSPrime Resins, Inc., a leading manufacturer of polyurethane grouts, epoxies and polyurea resins used for infrastructure repair and restoration, recently celebrated its 25th anniversary. Founded in 1982, Prime Resins, Inc. was created as a way to supply David Barton’s specialty contracting company, Barton Southern Company, with then difficult-to-find specialized epoxies.
“As the contracting business expanded, word of mouth about the products Barton Southern was using began to build a market for the epoxies,” Barton says. “I decided at that point to market the products to other concrete repair specialists.”
Prime Resins grew rapidly, and in 1990 Barton added a line of polyurethane chemical grout products. In 2004, the company moved to its current 48,000-square-foot building in Conyers, GA.
Prime Resins has since expanded its epoxy and chemical grout product lines, and has added polyurea and acrylic resins, as well as the pumps and accessories necessary for material applications.
Serving customers throughout the U.S., Australia, Canada, Argentina, Puerto Rico, Brazil and Mexico, Prime Resins embraces the motto “Innovations in Infrastructure Repair Technology.” By providing quality products with unsurpassed customer service, the company maintains a loyal customer base that continues to grow.
For more information, visit www.primeresins.com or call 1-800-321-7212.
RPM REPORTS RECORD SALES, NET INCOME FOR FISCAL 2007 FOURTH QUARTER AND YEARRPM International Inc. has reported record sales, record net income and record diluted earnings per share for its fiscal 2007 fourth quarter and year ended May 31, 2007. The company's larger industrial segment posted sharp improvements in sales and earnings for both the quarter and the year. The consumer segment lagged industrial with only modest gains in year-over-year sales and lower earnings for both the quarter and year.
RPM's record net sales of $1.0 billion were up 10.6% from the $909.2 million reported in the fiscal 2006 fourth quarter. Organic sales growth accounted for 7.3% of the increase, with 1.4% of that amount representing net foreign exchange gains. Net acquisition growth was 3.3% of the total.
Net income for the quarter was a record $84.0 million, compared to a loss of $142.0 million a year ago, which included the establishment of a long-term asbestos liability reserve of $321.0 million and fourth quarter asbestos reserves of $14.0 million pre-tax. Record diluted earnings per share were $0.65, compared to a loss of $1.21 in the year-ago period. Excluding the 2006 asbestos charge, net income grew 14.1% from $73.6 million a year ago, while diluted earnings per share increased 12.1% from $0.58 in the fiscal 2006 fourth quarter.
For more information, visit www.rpminc.com.