AKRON (June 25, 2014) — Myers Industries Inc. will combine its Myers Tire Supply and Patch Rubber Co. units into the same division as part of a realignment of its business segments following the sales of WEK Industries Inc.
Akron-based Myers recently completed the sale of WEK Industries, a producer of blow-molded plastic parts for the automotive industry, to Industrial Opportunity Partners, owners of Toledo Molding and Die Inc., for about $19.5 million.
The new Distribution Segment will consist of Myers Tire Supply, Myers Tire Supply International and Patch Rubber, which previously was part of Myers' Engineered Products Segment.
“We are focused on streamlining our business portfolio by expanding our leadership position in our Material Handling Segment and maintaining our strong market position in our Distribution Segment,” said Myers President and CEO John C. Orr.
The announcement of the segment realignment, he continued, “reflects our commitment to grow our returnable packaging, specialty molding, and storage and safety products within the Material Handling Segment.”
“It also presents the opportunity to grow our Distribution Segment through continued focus on providing the best products for tire repair and retread, and under-vehicle repair in a global marketplace. With these changes Myers has increased its focus on growing shareholder value.”
The new Material Handling Segment will consist of Buckhorn Inc., Akro-Mils, Novel, Myers do Brazil, Jamco Products Inc., Ameri-Kart, and Scepter, the latter of which is a new business that Myers is in the process of acquiring.
WEK Industries has been a part of the Myers' Engineered Products Segment and had annual net sales of about $36 million in 2013.
Meanwhile, Myers expects to finalize in early July the acquisition of Scepter Corp. and Scepter Manufacturing L.L.C., manufacturers of molded plastic materials-handling products for the consumer, marine, military and industrial markets. The proceeds from the sale of WEK, which was not part of Myers' core growth strategy, will be applied to the debt that will be incurred in the acquisition of Scepter, Myers said.
With the acquisition of Scepter and the planned sale of Myers' Lawn and Garden segment, Myers said it is realigning is business segments to reduce the reportable segments to two from four.
Starting with the second quarter Form 10Q and going forward, Myers said it will report its underlying earnings in two reportable segments: Material Handling and Distribution.