Describing it as the third bolt-on acquisition to its Material Handling Segment in the last two years, Myers Industries, Inc. has acquired Scepter Corporation and Scepter Manufacturing, LLC (Scepter). Scepter produces portable marine fuel containers, portable fuel and water containers and accessories, ammunition containers, storage totes and environmental bins.
Stating that this acquisition supports its long-term strategic growth and profitability improvement plan, Myers will also make use of Scepter's in-house product engineering and mold capabilities, enabling a larger product offering and greater global reach.
Scepter employs 350 employees and has manufacturing plants in Toronto, Canada and Miami, Oklahoma. The final purchase price was $157 million. Other terms of the agreement were not disclosed.
Scepter, with 2013 sales of approximately $100 million and trailing twelve 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 Company anticipates realizing synergies of more than $2 million on an annual basis driven by material cost savings and plant efficiencies.
"Scepter meets our ongoing objective to grow the profitability of this segment with a business that has a long history of product innovation and profitable market leadership," said John C. Orr, Myers president and CEO.
Myers has reduced its reporting segments from four to two, focusing on Material Handling and Distribution, its two core businesses. Scepter joins Myers Industries as part of the Material Handling Segment.