Myers selling lawn & garden business, buying blow molder Scepter

By Michael Lauzon
Correspondent

Published: June 2, 2014 12:23 pm ET
Updated: June 2, 2014 6:17 pm ET

Image By: Myers Industries Inc. Myers Industries' home and garden business includes molded plastic planters and pots.

Related to this story

Topics Mergers & Acquisitions, Blow Molding, Agricultural, Marine, Recreational/sporting goods, Insert molding

Myers Industries Inc. plans to boost its stake in plastic fuel tanks in an acquisition of Scepter Corp. and Scepter Manufacturing LLC.

Meanwhile, Myers also is looking to sell its lawn and garden business segment.

Myers already rotationally molds fuel tanks for marine, recreational vehicle and industrial markets. Scepter blow molds fuel tanks for marine, consumer, military and industrial markets.

Myers said the Scepter acquisition, announced June 2, will expand its materials handling segment, which now injection molds plastic reusable containers, pallets, bins, totes, beverage crates and bulk containers. Scepter also makes materials handling products include crates, recycling containers, ammunition boxes and similar items.

Other plastic goods that Scepter molds include rain barrels, vehicle trunk storage aids, portable auto ramps and oil extraction systems for small engines.

Myers plans to keep its existing Ameri-Kart fuel tank business in its engineered products segment. Scepter’s operations, including blow molding, will be part of Myers’ materials handling segment because its materials handling production is bigger than its fuel tanks business, a Myers spokeswoman explained in a phone interview.

Image By: Scepter Corp. Scepter molds tanks, fuel tanks, ammunition boxes, trunk storage systems and a variety of other products.

Scepter Corp. is headquartered in Toronto. Scepter Manufacturing of Miami, Okla., was the former Blitz USA Inc. fuel tank facility, which Scepter acquired in 2012. Myers in based in Akron, Ohio.

“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,” noted Myers President and CEO John Orr in a news release.

Myers expects to complete the Scepter purchase by June 30. It agreed to pay $165 million for Scepter, which had sales of about $100 million last year.

Scepter will lift Myers’ materials handling sales by about 30 percent. For the first quarter of 2014, Myers’ materials handling segment logged sales of $90.6 million, up 13 percent from the same period in 2013. Adjusted income before taxes was up 10 percent to $10.9 million.

Myers stated in a news release that the timing is right to sell its lawn and garden segment. A spokeswoman said the timing relates to Myers completing a restructuring of the business, which saw Myers close plants last year in Waco, Texas, and Brantford, Ontario. It also opened a plant in Sparks, Nev., and moved some production to Middlefield, Ohio. The company will focus on core businesses and treat the lawn and garden segment as discontinued in future financial reports. Investment bank William Blair & Co. will help Myers find a buyer, which could take a year.

Orr said the lawn and garden segment “has the greatest opportunity as part of an organization that is strategically focused on its primary markets for future growth.” The division includes injection molding of planters and pots.

The segment’s sales fell 18 percent to $49.8 million in the first quarter. The company reported a loss before taxes of $100,000, compared to adjusted income before taxes of $2.7 million in the same quarter in 2013. Myers blamed the loss on poor weather and problems in the segment’s restructuring.

Myers said it still expects to save $13 million annually from the restructuring.


Comments

Myers selling lawn & garden business, buying blow molder Scepter

By Michael Lauzon
Correspondent

Published: June 2, 2014 12:23 pm ET
Updated: June 2, 2014 6:17 pm ET

Post Your Comments


Back to story


More stories

Image

LiquiForm looks to fundamentally change blow molding process for bottles

March 5, 2015 12:13 pm ET

Those in the know are lifting the veil, just a bit, on fledgling technology being developed that would fundamentally change the way plastic bottles...    More

Image

VisiPak adds to customer mix, product offerings with Tulox acquisition

March 5, 2015 2:19 pm ET

VisiPak has acquired Tulox Plastics Corp., a maker of clear plastic packaging.    More

Image

Southeastern Container closing plant as Coke shifts bottle production

March 5, 2015 11:07 am ET

About 50 people will lose their jobs at a PET bottle making facility in Effingham, Ill., as container manufacturing shifts to Coca-Cola bottling...    More

Image

Auto supplier Motus adds more production as it buys Leon Interiors

March 5, 2015 10:52 am ET

Motus Integrated Technologies, a Tier 1 automotive interiors supplier, is getting bigger, adding the assets of Tier 2 supplier Leon Interiors Inc.    More

Image

Wright Plastic Products buys Tennessee auto supplier Hope Industries

March 4, 2015 3:51 pm ET

Michigan custom injection molder Wright Plastic Products Co. LLC has acquired Tennessee-based automotive supplier Hope Industries Inc., the companies ...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events