Myers Industries, Inc. has acquired the assets of Elkhart Plastics, Inc., one of the largest rotational molding companies in the U.S. and a supplier to the RV industry.
Elkhart will operate as a new strategic business unit within Myers’ Material Handling Segment, the company said. Elkhart Plastics is headquartered in South Bend, Indiana, has six U.S. manufacturing facilities and employs 460 people. It was founded in 1988.
“We are excited to welcome Elkhart, its president, Mr. Jack Welter, and the entire Elkhart team to the Myers family,” Myers Industries President and CEO Mike McGaugh stated. “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.”
In 2019, Elkhart’s revenues were $100 million, and its adjusted EBITDA margin was 9 percent, based on its unaudited, reviewed financial statements. Myers financed the transaction with cash on hand.
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, the company said.
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 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,” Elkhart Plastics President and CEO Jack Welter stated. “We are a good cultural fit with Myers, and we expect a smooth and successful integration of our organizations.”
The transaction is expected to generate annual cost synergies of $4 million to $6 million per year, Meyer said, although not from staffing cuts. The cost synergies will stem primarily from operational excellence initiatives and supply chain optimization. Others synergies would come from the broader geographic footprint created by the combined businesses, Meyer said.
“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,” McGaugh stated. “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.”
