AKRON, OH — Myers Industries, Inc. announced Tuesday that it has acquired the assets of Elkhart Plastics, Inc., one of the largest rotational molding companies in the United States. The acquisition is the latest action in Myers’ recently announced long-term strategic plan to transform the company into a high-growth, customer-centric innovator of value-added engineered plastic solutions.
Founded in 1988, Elkhart manufactures engineered products for the recreational vehicle, marine, agriculture, construction, truck and other industries. Elkhart has established itself as an innovator, market leader, and best-in-class solutions provider to customers across the United States. The combination of Elkhart with Myers’ Ameri-Kart business will create the fifth-largest rotational molding business in the United States. The combined business will provide customers with access to a more complete portfolio of diverse products supported by increased supply-chain efficiencies.
“We are excited to welcome Elkhart, its president, Mr. Jack Welter, and the entire Elkhart team to the Myers family,” said Mike McGaugh, President and CEO of Myers Industries. “Elkhart has a stellar reputation of providing superior service and quality products to its customers, and we look forward to adding it to Myers’ already strong portfolio of brands.”
McGaugh continued, “We recently launched our new, long-term strategic plan which, in the near term, is focused on strengthening the Company through organic growth initiatives, commercial and operational excellence, pursuing bolt-on acquisitions in plastics molding, and driving a high-performing culture. As a bolt-on acquisition within our existing technology space, Elkhart fits perfectly into this plan and helps us take a meaningful step toward our long-term vision.”
Elkhart will operate as a new strategic business unit within Myers’ Material Handling Segment. Headquartered in South Bend, IN, Elkhart has six U.S. manufacturing facilities and employs approximately 460 people. In 2019, Elkhart’s revenues were approximately $100 million, and its adjusted EBITDA margin was approximately 9%, based on its unaudited, reviewed financial statements. The acquisition is expected to be immediately accretive to earnings, and Myers financed the transaction with cash on hand.
The transaction is also expected to generate annual cost synergies of approximately $4 million to $6 million per year, most of which are projected to be achieved in the first two years. These cost synergies will stem primarily from operational excellence initiatives and supply chain optimization. In addition, the Company expects to realize growth synergies due to the broader geographic footprint created by the combined businesses.
“We are proud of Elkhart’s long history as a leader in the roto-molding industry, and we look forward to the new opportunities the combination with Myers will bring for our customers, employees and all of our stakeholders,” said Jack Welter, president and CEO of Elkhart Plastics. “We are a good cultural fit with Myers, and we expect a smooth and successful integration of our organizations.”