Myers Industries Buys Industrial Ground Protection Firm Signature Systems For $350M
Portfolio Pulse from Shivani Kumaresan
Myers Industries, Inc (NYSE:MYE) is acquiring Signature Systems for $350 million, financed through a new credit facility. Signature forecasts 2023 revenue of $122 million, with $24 million operating income and $44 million Adjusted EBITDA. The deal is expected to close in Q1 2024, with EPS accretion starting in 2025 and full operational and cost synergies of $8 million by 2025. Myers Industries' CEO sees this as a key step in their strategic transformation. Myers had $24.8 million in cash as of September 30 and its stock saw a slight increase.
January 02, 2024 | 4:18 pm
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Myers Industries is acquiring Signature Systems for $350M, expecting to see EPS accretion and operational synergies by 2025, aligning with their strategic growth plan.
The acquisition is significant for Myers Industries as it is expected to deliver EPS accretion and operational synergies, indicating a positive outlook for future profitability. The deal is a strategic move that could enhance the company's market position and financial performance, which is likely to be viewed favorably by investors. The slight increase in stock price on the announcement day suggests a positive market reaction, although the full impact will depend on the successful integration of Signature Systems and realization of projected financial benefits.
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