In a $350 million deal, plastics processor Myers Industries Inc. is acquiring Signature Systems Group LLC, a maker of composite mats and flooring based in Flower Mound, Texas.
Myers, based in Akron, Ohio, said the deal "bolsters [the firm's] margin and profitability profile and provides an attractive platform for continued growth." The acquisition will deliver $8 million in annualized operational and cost synergies by 2025, officials added.
In a Jan. 3 phone interview, Myers CEO Mike McGaugh said Myers' acquisition of Signature is "a pivot moment for our company." Myers Chief Financial Officer Grant Fitz added Jan. 3 that Signature "is in a market adjacent to us. … As we looked at them, we got really excited about a deal."
Signature is a leading manufacturer and distributor of high-quality, branded composite ground protection products and is also a leading provider of turf protection solutions for stadiums and event venues in North America.
Products made by Signature include composite mats sold under the Megadeck, Duradeck, Signaroad and Omnideck trade names, as well as Matrax-brand flooring systems and Eventdeck-brand event flooring. The firm was founded in 1998 in New York as a maker of fencing products.
Signature's products are made from a combination of polyethylene resin and calcium carbonate. Its mats and flooring are made via compression molding, with a single sheet weighing as much as 1,000 pounds.
"Because of the size of the presses, these products are difficult to make, so there's a high barrier to entry," McGaugh said.
In addition to its Orlando, Fla., operations, Signature operates a warehouse in Flower Mound and an office and warehouse in the United Kingdom. The firm employs a total of 200.
Myers will continue to look for more acquisitions, according to McGaugh. "We want branded products, not generics," he said. "We want products that are unique and competitive."
Signature was sold to Linsata Capital Partners of Cleveland in 2013. Linsata then sold the business to Center Rock Capital Partners of Bloomfield Hills, Mich., in 2019. Signature has supplied products for four Olympic Games, most recently the 2020 Tokyo Olympics. The firm also provided products for the 2022 FIFA World Cup in Qatar.
In 2023, Signature posted sales of $122 million, operating profit of $24 million and adjusted EBITDA of $44 million. Signature CEO Jeff Condino said in the release the firm's business "continues to benefit from powerful tailwinds in infrastructure investments."
"Our highly engineered ground protection products are well positioned for continued growth due to the conversion from wood products to composite matting solutions," he added. The transaction is expected to close in the first quarter of 2024 and will be financed through a new $350 million credit facility.
Myers posted sales of almost $900 million in 2022. The firm ranks as the second-largest rotomolder in North America, according to the latest ranking by Plastics News. Myers also does custom molding and makes returnable packaging, storage and safety products and, in the U.S. market, owns the largest tire repair supply distribution business.
On Wall Street, Myers' per-share stock price was near $16 in early November, but closed at just above $19 on Jan. 4.