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07/2014

SCEPTER CORPORATION acquired by MYERS INDUSTRIES

CANADA Chemicals & Materials / Material Transformation / Plastics EV 100M - 350M USD

Context

The acquisition of Scepter Corporation by Myers Industries represents a pivotal milestone in its strategic refocusing and sector consolidation efforts, coming on the heels of a significant simplification of its operational structure from four to two core divisions. This streamlining enables the company to concentrate its capital deployment on the high-margin handling segment. The integration of Scepter's assets allows for the merging of two complementary product portfolios, expanding the group's global commercial footprint while leveraging its internal engineering infrastructure and state-of-the-art mold design capabilities to accelerate product line renewal. Prior to the acquisition, Scepter had established a market-leading position through its technical innovation track record. However, its geographic expansion and gross profitability were constrained by the unit cost of raw material sourcing and regional logistical bottlenecks. Post-acquisition priorities are focused on realizing immediate industrial synergies through the bulk purchasing of plastic resins, harmonizing the operational processes of the Toronto and Miami manufacturing facilities with the company's standards, and introducing Scepter's products into Myers' existing distribution networks to maximize installed production capacity.

SCEPTER CORPORATION, which reported an EBITDA margin of LOGIN in 2013, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.6x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Scepter Corporation operates a specialized industrial facility focused on high-density polymer extrusion-blow molding and injection molding, dedicated to manufacturing fluid transportation containers and rigid storage solutions for the marine, defense, and consumer goods markets. With two production plants located in Toronto, Canada, and Miami, Oklahoma, the company processes large volumes of polyethylene resin to produce marine fuel tanks, certified portable jerrycans, and ammunition cases that meet stringent environmental safety and permeability regulatory standards. The revenue generation model is based on the sale of standardized products to large specialized distribution networks, industrial hardware suppliers, and government procurement agencies.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 100M - 350M USD

Revenue range: 100M - 200M USD

EBITDA range: 10M - 30M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SCEPTER CORPORATION by MYERS INDUSTRIES are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: scepter corporation

Acquirer: myers industries