Myers Industries To Acquire Signature Systems For About $350 Mln

(RTTNews) - Myers Industries, Inc. (MYE), a manufacturer and distributor of industrial goods, Tuesday said it agreed to acquire Signature Systems, for approximately $350 million.

Upon acquisition, the company plans to achieve its Horizon 1 goals of revenue worth $1 billion at 15% EBITDA margin, the company said in a statement.

The company expects that acquisition will be accretive to EPS in 2025 by $0.20 to $0.30, in 2026 by $0.40 to $0.50 and additional EPS accretion after 2026. However, it expects EPS accretion to remain neutral in 2024.

The transaction, which is expected to close in first quarter of 2024, will be financed through a newly created credit facility of $350 million.

For full year 2023, Signature expects revenue of $122 million and operating income of $24 million. It anticipates adjusted EBITDA to stand at $44 million.

On Friday, Myers' stock closed at $19.55, down 0.86%.