Myers Industries Buys Industrial Ground Protection Firm Signature Systems For $350M

Myers Industries, Inc MYE and Signature Systems are planning a $350-million merger.

The transaction will be financed through a new $350 million credit facility. 

Signature has projected 2023 revenue, operating income, and Adjusted EBITDA of approximately $122 million, $24 million and $44 million, respectively.

The transaction is expected to close in the first quarter of 2024 and deliver EPS accretion of 20 cents - 30 cents in 2025, 40 cents - 50 cents in 2026 and additional meaningful EPS accretion beyond 2026.

Annualized run-rate operational and cost synergies of $8 million are expected to be fully obtained by 2025.

“This acquisition is a catalyst in the transformation of Myers Industries and firmly moves us into Horizon Two of our Three Horizon strategy,” said CEO Mike McGaugh.

Moelis & Company LLC advised Myers on the transaction.

Myers held $24.8 million in cash and equivalents as of Sep. 30.

Myers manufactures a wide range of polymer products for industrial, agricultural, automotive, commercial and consumer markets.

Price Action: MYE shares are trading higher by 0.15% at $19.58 on the last check Tuesday.