Myers Industries Completes Divestiture of Brazilian Operations
December 20 2017 - 8:45AM
Business Wire
Myers Industries, Inc. (NYSE: MYE) today announced that it has
completed the sale of its Brazilian operating subsidiaries,
consisting of Myers do Brasil and Novel Plasticos, to Novel
Holdings – Eireli in consideration for one U.S. dollar and the
assumption of all liabilities and obligations of the subsidiaries,
whether arising prior to or after the closing of the transaction.
This transaction occurs after investing a considerable amount of
effort evaluating strategic alternatives for the Brazil
business.
In connection with the transaction, Myers Industries expects to
record a pre-tax loss of approximately $35 million during the
fourth quarter of 2017, primarily related to the write-down of
assets and other transaction-related costs. The Company also
expects to realize a cash tax benefit of approximately $15 million
as a result of the write-off of the Company’s investment in Brazil.
No assets or liabilities associated with the Brazilian entities
will be retained by Myers Industries, and the result of the
divestiture is not expected to have a material impact on the
Company’s future operating income performance.
President and Chief Executive Officer Dave Banyard commented,
“We are pleased to have reached this agreement, as this strategic
transaction will allow us to better focus energy and resources on
targeted niche markets where we see opportunities for stronger
growth and value creation for the Company. Our exit from Brazil
should improve our future cash flow generation, and we are also
pleased that the transaction will provide additional value in the
form of a meaningful tax benefit.”
The Brazilian operations design and manufacture reusable plastic
shipping containers, plastic pallets, crates and totes used for
closed-loop shipping and storage in Brazil’s automotive,
distribution, food, beverage, and agriculture industries. The
combined Brazilian entities had revenue of approximately $24
million in 2016.
About Myers Industries
Myers Industries, Inc. is an international manufacturer of
polymer 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 may 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 “expect”, “believe”,
“project”, “plan”, “anticipate”, “intend”, “objective”, “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: raw
material availability, increases in raw material costs, or other
production costs; 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; unexpected failures at our manufacturing
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; and other risks as detailed in the Company's
10-K and other reports filed with the Securities and Exchange
Commission. 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20171220005035/en/
Myers Industries, Inc.Monica Vinay, 330-761-6212Vice President,
Investor Relations & Treasurer
Myers Industries (NYSE:MYE)
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