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

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its...    More

Image

Thermoforming Technology Group adds Lyle Industries to its portfolio

July 18, 2014 2:48 pm ET

Thermoforming Technology Group LLC has expanded its thermoforming equipment presence with the acquisition of Lyle Industries Inc.    More

Image

Polynt, CCP create composite resins giant

July 18, 2014 10:13 am ET

France's Total SA has agreed to sell CCP Composites to Polynt Group SpA, based in Italy, for an undisclosed price.    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events