TORONTO — Myers Industries Inc. will become an international producer of plastic materials-handling goods with the purchase of a Sommer Allibert SA business.
The Akron, Ohio, firm said Dec. 3 it agreed to pay about $130 million in cash for the business, which had net sales of about $140 million last year. The deal complements and expands Myers' current stake in materials handling and will give it a significant offshore position.
Sommer Allibert's materials-handling division uses injection and structural foam molding, rotational molding and winding extrusion to make bulk containers, totes, pallets and tanks.
Sommer Allibert spokeswoman Nadine Fueri said the deal includes the Allibert Contico joint venture and plant in Springfield, Mo. Myers will buy out both Sommer Allibert and Contico to get the structural foam molding operation. Other plants include two near Paris, two near Barcelona, Spain, one near Birmingham, England, and a 50 percent interest in an Anshan, China, production facility. Myers also will acquire sales offices in Austria, Belgium, Canada, Germany, Italy, Mexico, Portugal and the United States. Myers expects to complete the deal in the first quarter of 1999.
``We are familiar with this business,'' said Myers spokesman Stephen Durinsky. Myers units supply various materials-handling systems and the firm has been expanding in this area. This year its Buckhorn Inc. subsidiary bought Kadon Corp. of Dayton, Ohio, and its Ameri-Kart Corp. unit bought rotomolder Sherwood Plastics Inc. of Fostoria, Ohio.
Myers made its first serious foray into Europe in January by purchasing industrial and consumer household storage products molder A/S E. Damberg Group of Nykobing, Denmark.
Sommer Allibert will focus on its core businesses of auto interior components and floor coverings, Fueri said by telephone from her firm's head office in Nanterre, France.
Myers recorded sales of $281 million for nine months ended Sept. 30, up 15 percent from the year-earlier period.