Myers Industries commences sale process of lawn & garden segment
Myers Industries, Inc. announced that it has engaged the investment bank William Blair & Company to commence the sale of its Lawn & Garden Segment. In February 2013, the Company had announced that it was beginning a two-phased restructuring of Lawn & Garden which might include external options. The Company has concluded that the timing is right to streamline Myers’ business mix and allow the Company to focus resources on its core growth platforms. The Company expects the sale process to be completed within the next twelve months.
Commenting on the announcement, John C. Orr, President and Chief Executive Officer said, “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.”
The Company will report the Lawn & Garden Segment as discontinued operations in future filings.
The Company also announced that is has entered into a definitive agreement to acquire Scepter Corporation and Scepter Manufacturing, LLC (Scepter). The purchase includes manufacturing facilities, warehouses and offices in Scarborough, Ontario and Miami, Oklahoma. The purchase price is $165.0 million, subject to certain closing adjustments. The Company anticipates that the acquisition will close within approximately thirty days upon satisfaction of all conditions precedent to closing. Additional terms of the agreement were not disclosed.
Scepter is an industry leading manufacturer of molded plastic material handling products for marine, military, industrial, and consumer markets. With approximate net sales of $100 million in 2013, Scepter’s long 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. Based on 2013 results, with the addition of Scepter, Myers’ Material Handling Segment’s sales will increase by 30 percent.
Orr stated, “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 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. The proceeds from the future sale of the Lawn & Garden Segment will be used to pay down debt.
