RPM Intl agrees to $797.5M deal on asbestos claims
MEDINA, Ohio (AP) — RPM International plans to spend nearly $800 million as part of a preliminary deal to fund a trust that resolves asbestos personal injury claims tied to a business owned by its Specialty Products Holding Corp.
The Medina, Ohio, company said Monday that the agreement still needs the approval of the claimants as well as the U.S. Bankruptcy Court.
RPM will start funding the trust for current and future claimants with a $450 million cash payment and then make additional payments over the next few years until a total of $797.5 million in contributions is reached. Those contributions are expected to be tax deductible.
RPM International Inc.'s Specialty Products unit filed for Chapter 11 reorganization in May 2010. RPM subsequently deconsolidated the business but plans to reconsolidate the unit with its operations once the settlement plan is consummated
RPM's subsidiaries make specialty coatings, sealants and building materials for both consumer and industrial markets.
Its consumer brands include Rust-Oleum, DAP and Zinsser.