Myers Industries Acquires Mohawk Rubber Sales of New England Inc.
June 01 2022 - 8:50AM
Business Wire
Accretive acquisition strengthens Myers’
Distribution Segment
Brings additional scale and numerous synergy
opportunities
Improves supply chain and operating leverage by
adding four new distribution centers
Myers Industries, Inc. (NYSE: MYE) today announced that it has
acquired the assets of Mohawk Rubber Sales of New England Inc.,
which was financed with its revolving credit facility. Mohawk
Rubber Sales is a leading auto aftermarket distributor with a long
standing reputation for quality and service. This value-creating
acquisition is another proof point in the Company's successful
execution of its 3-horizon strategy.
“We are extremely pleased to announce the addition of Mohawk
Rubber Sales to the Myers’ family. Mohawk and its team bring
complementary geographic coverage, additional sales and customer
service capability, and meaningful scale to our Distribution
Segment,” said Mike McGaugh, President and CEO of Myers Industries.
“Mohawk’s business model is similar to our own, and this
transaction is another example of our team’s ability to find
accretive opportunities to expand and grow our businesses -
accelerating our progress against Horizon 1 of our 3-horizon
strategy.”
Paul Johnson, Vice President of Myers’ Distribution Segment,
added, “I am excited to join forces with Mohawk Rubber. The company
has a large and very experienced sales team and a complementary
distribution network that, combined with Myers’ Distribution, will
bring even better service solutions, support and value to our
customers. Together with Mohawk, Myers’ Distribution will have the
largest, most experienced field and customer service teams in the
tire supplies and repair industry. We believe we’ll be in an even
better position to help our customers, large and small, win in
their markets, every day.”
Brian McGeoghegan, Owner of Mohawk Rubber Sales, said, “My team
and I are thrilled to be joining the Myers family and believe
Myers’ culture and values align directly with our own. We’ve long
admired Myers Tire Supply and its leading position in the tire
repair and retread market and believe that Mike and his senior
leadership team have repositioned the business for long-term
success. We bring complementary assets and services, which will
help both of our businesses achieve scale and efficiencies. Our
collective focus on strong service and innovative products will
create the best solutions in the market today and deliver enhanced
value for our customers.”
Founded in 1932, Mohawk Rubber Sales has grown into one of the
country’s leading providers of tire repair distribution across
traditional and online channels. The Company is headquartered in
Hingham, MA and has four strategically located distribution centers
across the United States located in Hingham, MA, Alpharetta, GA,
Salt Lake City, UT, and Houston, TX. In 2021, Mohawk’s revenues
were approximately $65 million.
Mohawk will be integrated into the Myers’ Distribution segment.
The transaction provides both growth and cost synergy opportunities
and is expected to be accretive to earnings in 2023.
About Myers Industries
Myers Industries, Inc. is a leading manufacturer of a wide range
of polymer and metal products for industrial, agricultural,
automotive, commercial and consumer markets. The Company is also
the largest distributor of tools, equipment and supplies for the
tire, wheel, and under-vehicle service industry in the U.S. Visit
www.myersindustries.com to learn more.
Caution on Forward-Looking
Statements
Statements in this release include “forward-looking” statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Any statement that is not of historical fact may be deemed
“forward-looking”. Words such as “will”, “expect”, “believe”,
“project”, “plan”, “anticipate”, “intend”, “objective”, “outlook”,
“target”, “goal”, “view” and similar expressions identify
forward-looking statements. These statements are based on
management's current views and assumptions of future events and
financial performance and involve a number of risks and
uncertainties, many outside of the Company's control that could
cause actual results to materially differ from those expressed or
implied. Risks and uncertainties include: impacts from the COVID-19
pandemic on our business, conditions, customers and capital
position; the impact of COVID-19 on local, national and global
economic conditions; the effects of various governmental responses
to the COVID-19 pandemic, raw material availability, increases in
raw material costs, or other production costs; impacts of price
increases, risks associated with our strategic growth initiatives
or the failure to achieve the anticipated benefits of such
initiatives; unanticipated downturn in business relationships with
customers or their purchases; competitive pressures on sales and
pricing; changes in the markets for the Company’s business
segments; changes in trends and demands in the markets in which the
Company competes; operational problems at our manufacturing
facilities, or unexpected failures at those facilities; future
economic and financial conditions in the United States and around
the world; inability of the Company to meet future capital
requirements; claims, litigation and regulatory actions against the
Company; changes in laws and regulations affecting the Company;
impact of the U.S. elections impacts on the regulatory landscape,
capital markets, and responses to and management of the COVID-19
pandemic including further economic stimulus from the federal
government; and other important factors detailed previously and
from time to time in the Company’s filings with the Securities and
Exchange Commission, including the Company’s Annual Report on Form
10-K for the year ended December 31, 2021 and subsequent Quarterly
Reports on Form 10-Q. Such reports are available on the Securities
and Exchange Commission's public reference facilities and its
website at www.sec.gov and on the Company's Investor Relations
section of its website at www.myersindustries.com. Myers Industries
undertakes no obligation to publicly update or revise any
forward-looking statements contained herein. These statements speak
only as of the date made.
M-GU
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version on businesswire.com: https://www.businesswire.com/news/home/20220601005718/en/
Monica Vinay Vice President, Investor Relations & Treasurer
(330) 761-6212
Myers Industries (NYSE:MYE)
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