Strong Step in Expansion

Myers Industries, Inc. MYE and Signature Systems are set to consolidate their assets in a prolific $350-million merger.

To finance the deal, a new $350 million credit facility is on the cards, showcasing the confidence in the potential payoff from this acquisition.

Robust Projections and Expectations

Signature Systems has projected an impressive 2023 revenue of approximately $122 million, with a corresponding operating income and Adjusted EBITDA of $24 million and $44 million, respectively.

The transaction is expected to culminate in the first quarter of 2024, setting the stage for notable EPS accretion of 20-30 cents in 2025, followed by a substantial 40-50 cents in 2026, with further significant EPS accretion anticipated beyond 2026.

Promising Synergies for Growth

Anticipated annualized run-rate operational and cost synergies of $8 million are projected to be fully realized by 2025, amplifying the strategic and financial benefits the combined entity will yield.

Executive’s Perspective

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

Financial Counsel and Position

Advising Myers on the transaction is Moelis & Company LLC, a decision reflecting the company’s prudence and foresight in securing astute financial guidance.

By the end of September 30, Myers held $24.8 million in cash and equivalents, affirming the company’s sound financial position.

Market Response

MYE shares are currently trading 0.15% higher, standing at $19.58 at the close of business on Tuesday.

Myers Industries’ Diverse Spectrum

Pioneering a diverse range of polymer products for industrial, agricultural, automotive, commercial, and consumer markets, Myers Industries continues to demonstrate a commitment to innovation and advancement.