Myers Industries Inc. — the Akron, Ohio, based manufacturer of plastic rotation-molded fuel tanks — recently acquired Scepter Corp., which makes blow molded fuel tanks for marine, consumer, military and industrial markets, for $165 million.
The acquisition allows Myer to expand its material handling segment to include the types of crates, recycling containers, ammunition boxes and similar items currently being made by Scepter, according to John Orr, Myers’ president and CEO.
“The addition of Scepter is anticipated to provide Myers Industries with the opportunity to expand upon our leadership position in the material handling segment, broaden our product offering and better position us for long-term growth in new markets,” Orr told Plastics News.
The acquisition of Scepter, which has sales of about $100 million in 2013, was expected to be completed by June 30.
Myers also announced that it plans to sell off its lawn and garden division as part of its restructuring of its business. Last year, Myers closed plants in Waco, Texas, and Brantford, Ontario. The company also opened a new manufacturing facility in Sparks, Nevada, and shifted additional production to its plant in Middlefield, Ohio.
The company expects its purchase of Scepter to increase its materials handling sales by about 30%. During the first quarter of 2014, Myers posted sales of $90.6 million, up 13% from the same period in 2013. Adjusted income before taxes was up 10% to $10.9 million.
Myers officials said they plan to keep their existing Ameri-Kart fuel tank business in its engineered products segment. Scepter’s operations, which include blow molding, will be part of Myers materials handling division because its production is bigger than its fuel tanks business.