In a bid to increase its presence in the plastic fuel tank sector, U.S.-based plastics products maker Myers Industries Inc. has acquired Toronto’s Scepter Corp. and Scepter Manufacturing LLC for US$160 million.
The deal includes Scepter’s manufacturing facilities, warehouses, and offices in Toronto and Miami, Oklahoma.
Akron, Ohio-based Myers anticipates that the acquisition will close within 30 days.
Scepter is an injection molder and blow molder of plastic material handling products, including fuel tanks, for marine, military, industrial, and consumer markets.
Scepter was founded in 1949 by Evald Torokvei, and began as a manufacturer of inflatable vinyl toys. In 2013, the company reported net sales of $100 million.
“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,” Myers president and CEO John Orr said in a June 2 news release. Based on the 2013 financial results, Orr continued, the addition of Scepter is expected to increase Myers’ material handling segment’s sales by 30 per cent.
Myers molds products for industrial, agricultural, automotive, commercial, and consumer markets, and is also a wholesale distributor of tools, equipment and supplies for the tire, wheel and under vehicle service industry in the U.S. Myers already molds fuel tanks.
Myers also announced that it is looking to sell its lawn and garden business segment. In February 2013, Myers had announced that it was beginning a two-phased restructuring of the lawn and garden segment, and that selling the division would be an option. “[Myers] has concluded that the timing is right to streamline its business mix and allow the company to focus resources on its core growth platforms,” the company said in the June 2 news release.
According to John Orr, the lawn and garden segment “has the greatest opportunity as part of an organization that is strategically focused on its primary markets for future growth.” The division includes injection molding of planters and pots.