AKRON (June 3, 2014) — Myers Industries Inc. has purchased a plastics molding firm and said it plans to sell its Lawn & Garden Segment.
The company engaged the investment bank William Blair & Co. to undertake the sale of the lawn & garden unit.
The company announced in February 2013 that it was beginning a two-phased restructuring of the lawn & garden unit “which might include external options,” Myers said, adding that it “has concluded that the timing is right to streamline Myers’ business mix and allow the company to focus resources on its core growth platforms.”
Myers said it expects the unit’s sale process to be completed within the next 12 months.
John C. Orr, president and CEO, said that “after detailed evaluation, the company and the board of directors have determined that the Lawn & Garden Segment has the greatest opportunity as part of an organization that is strategically focused on its primary markets for future growth.”
In future filings Akron-based Myers plans to report the Lawn & Garden Segment as discontinued operations.
The company also announced June 2 that is has entered into a definitive agreement to acquire, for $165 million, Scepter Corp. and Scepter Manufacturing L.L.C., a manufacturer of molded plastic material handling products for marine, military, industrial, and consumer markets. The purchase includes manufacturing facilities, warehouses and offices in Scarborough, Ontario, and Miami, Okla. The purchase price is subject to certain closing adjustments.
Myers said it anticipates the acquisition will close within about 30 days when all conditions have been satisfied. It did not disclose additional terms of the agreement.
With approximate net sales of $100 million in 2013, Scepter’s “history of innovation, in-house product engineering and state of the art mold capabilities complements and continues to grow Myers Industries Material Handling Segment in North America, increases its global reach, and supports the long-term strategic growth plan of the company,” according to Myers. Based on 2013 results, Myers said the addition of Scepter will increase by 30 percent Myers’ Material Handling Segment’s sales.
Mr. Orr noted that “the addition of Scepter is anticipated to provide Myers Industries with the opportunity to expand upon our leadership position in the Material Handling Segment, broaden our product offering and better position us for long-term growth in new markets.”
Concurrent with the signing of the agreement to purchase Scepter, Myers said it has amended its senior secured revolving credit facility from $200 million to $300 million to help fund the acquisition. The term of the senior credit facility remains unchanged and is scheduled to expire in December 2018. Proceeds from the future sale of the Lawn & Garden Segment will be used to pay down debt.
Myers manufactures polymer products for industrial, agricultural, automotive, commercial and consumer markets. Its Akron-based Myers Tire Supply Distribution Inc. subsidiary is a distributor of tools, equipment and supplies for the tire, wheel and under vehicle service industry in the U.S.
More information about Myers is available on its website.