AKRON (April 4, 2008) — Nearly a year after Myers Industries Inc. announced a $1.1 billion agreement to be acquired by an investment group and after subsequent delays in finalizing the purchase, the deal has fallen through.
GS Capital Partners (GSCP), a private equity arm of Goldman, Sachs & Co., decided not to proceed with the acquisition of Akron-based Myers “based on GS' review and continued weakness in broader markets in which Myers operates,” according to a Myers spokesman. Consequently, he said it will be “business as usual” at Myers.
“The GS offer was a unique opportunity that the company considered,” he added. “We're not changing strategy.”
Myers shareholders had approved the acquisition agreement with GSCP July 23. The deal was valued at approximately $1.07 billion, including the assumption or repayment of approximately $276.0 million, amounting to $22.50 per share. Myers' stock closed April 3 at $13.60 on the New York Stock Exchange, and hit a low of $11.94 early April 4 when the announcement was made.
The buyout was originally expected to close in September, but then GSCP delayed the close until the end of the year due to weak credit market conditions before it requested an extension until April 30 to further evaluate conditions in certain industries in which Myers operates.
Myers is a manufacturer and distributor of tire repair supplies and equipment as well as polymer products for the commercial and consumer markets.