Myers Industries Acquires Elkhart Plastics Inc.

Myers Industries Acquires Elkhart Plastics Inc.

Combination of Elkhart and Ameri-Kart businesses creates the fifth largest rotational molder in the United States.

Myers Industries Inc. 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, Indiana, 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.”

You May Also Like

5 Tracks Vie for $50K in ‘Advance My Track Challenge’

Final round of voting takes place May 9-15; track receiving most votes wins grand prize.

Advance Auto Parts, official auto parts retailer of NASCAR and entitlement sponsor of the NASCAR Advance Auto Parts Weekly Series (NAAPWS), announced the five NASCAR short tracks moving into the final round of fan voting in the third-annual Advance My Track Challenge.

The following tracks will be part of the final round of voting taking place May 9-15. Each of these tracks received the most votes in their region during the first round of voting, which took place April 4 through May 5. The final round includes an additional track that received the next-highest number of votes among all regions. 

Federated to Sponsor World of Outlaws Memorial Day Spectacular

Race is set for May 29 at Lawrenceburg Speedway in Indiana.

Auto Value & Bumper to Bumper Wrap Up Hawaii Getaway

Grand prize-winning guests bid farewell to Oahu after spending a week there as part of the “Hawaii Getaway” promotion.

Auto Value, Bumper to Bumper Kick Off Hawaii Getaway Promotion

Winning shop owners, technicians and their guests won roundtrip airfare, luxury hotel accommodations and more.

Eric Sills Inducted into Federated Vendor Hall of Fame

Sills was honored at the Automotive Parts Services Group annual conference and expo in National Harbor, Maryland.

Other Posts

BBB Industries Acquires Inter-Turbo in Poland

Based in Katowice, Poland, Inter-Turbo sustainably manufactures turbochargers, injectors and diesel particulate filters.

Bapcor Limited Acquires E-Max Australia

E-Max will become part of Bapcor’s Commercial Vehicle Group, and part of the Australian Truck Parts wholesale business.

LKQ Acquisition of Uni-Select Receives Final Approval

The deal, first announced on Feb 27, is expected to generate approximately $55 million in run-rate cost synergies and incremental revenue upside opportunities.

Zender’s Truck & Equipment, Parts & Service Joins FleetPride

This marks FleetPride’s first service location on the West Coast.