Myers Industries Inc. said it completed the $157 million acquisition of Scepter Corp. and Scepter Manufacturing LLC, a producer of portable marine fuel containers, portable fuel and water containers and accessories, ammunition containers, storage totes and environmental bins.
With the acquisition, Akron, Ohio-based Myers Industries adds Scepter's 350 employees and manufacturing plants in Toronto and Miami, Okla.
Myers Industries said Scepter, which had sales in 2013 of about $100 million and trailing 12 months EBITDA of $23.5 million, “is expected to be immediately accretive to adjusted earnings per share and to generate a return on investment above the company's cost of capital.”
The deal should lead to about $2 million a year in material cost savings and plant efficiencies, Myers Industries said in a news release.
Scepter's in-house product engineering and its art mold capabilities “complements Myers Industries' Material Handling Segment in North America through an increased product offering and greater global reach,” according to the release.
John C. Orr, president and CEO of Myers Industries, said Scepter is the third acquisition to the company's Material Handling unit in the last two years.
On June 24, Myers Industries announced it has reduced its reporting segments from four to two, focusing on Material Handling and Distribution, its two core businesses.