Myers Industries completes acquisition to strengthen materials handling segment

Third bolt-on acquisition to material handling segment in the last two years.
By Modern Materials Handling Staff
July 03, 2014 - MMH Editorial

Myers Industries has announced that on July 2, 2014 it completed the acquisition of Scepter Corporation and Scepter Manufacturing.

Scepter is a leading producer of portable marine fuel containers, portable fuel and water containers and accessories, ammunition containers, storage totes and environmental bins. Scepter employs 350 employees and has manufacturing plants in Toronto, Canada and Miami, Okla. 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.

The acquisition of Scepter supports the long-term strategic growth and profitability improvement plan of the company. Scepter’s in-house product engineering and state of the art mold capabilities complements Myers Industries’ material handling segment in North America through an increased product offering and greater global reach.

“Scepter is an excellent strategic fit with Myers Industries. As our third bolt-on acquisition to the material handling segment in the last two years, 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, president and CEO. “We are very pleased to welcome Scepter employees to Myers Industries and look forward to working together to efficiently integrate Scepter into our portfolio of companies, capitalize on synergies, and continue to grow profitably while adding value for all stakeholders.”

As previously announced on June 24, 2014, Myers’ has reduced its reporting segments from four to two focusing on material handling and distribution, its two core businesses.



Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

As was the case for the second quarter, third quarter earnings results for publicly-traded less-than-truckload (LTL) carriers are again strong. Signs of solid earnings results from carriers that have posted earnings to date include tonnage increases, gains in weight per shipment and average daily shipments, higher yield, and revenue per hundredweight.

While the holiday season is known to bring good tidings and cheer to all, it may also come with another thing that is not so pleasant: higher rate freights. That was the thesis of a commentary written by Mark Montague, industry pricing analyst and chief market-watcher for DAT, a Portland, Ore.-based subsidiary of TransCore.

Earlier this week, FedEx said it is expanding its International First service for early deliveries with the addition of 31 new origin countries, which will bring the total number of origin markets for the service to 97.

Monday, December 22 is pegged as UPS's peak delivery day, as the company expects to deliver more than 34 million packages that day, adding that it expects to see six days in December top last year’s peak shipment day delivery record of 31 million packages.

The time has come again for less-than-truckload (LTL) general rate increases (GRI), with various carriers recently announced their respective rate hikes in recent days.

About the Author

Josh Bond, Associate Editor
Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce. Contact Josh Bond

Comments

Post a comment
Commenting is not available in this channel entry.